GroundTruth, an adtech company that uses location data to target ads and that owns the WeatherBug app, has appointed the investment bank JEGI Clarity to explore its strategic options, which could include a possible sale of all or part of the business, according to three people familiar with the matter.
Originally known as xAd, GroundTruth was founded in 2003 and has raised more than $160 million in funding, per PitchBook.
GroundTruth’s advertising platform is powered by its location data that allows advertisers to model their campaigns based on real-world information, like visits to stores. It’s recently worked with brands including Hooters, The Florida Keys, and Giltuss, according to its website.
Advertisers can also feed GroundTruth’s data into their preferred ad-buying platform, and media companies like iHeart Radio, Cox, and Scripps have used its data to enhance their advertising offerings.
The company acquired the consumer app WeatherBug in 2016, for which it hosts ads and also draws anonymized data from its more than 20 million users.
GroundTruth almost reached a deal to sell WeatherBug in 2019, but talks ultimately collapsed, according to two sources familiar with the matter.
The current plan is to sell WeatherBug and GroundTruth as separate assets, the people familiar with the process said. That plan could change.
As new privacy laws roll out across the world, increasing scrutiny has been poured on companies that transact location data. GroundTruth shut down its European operations in 2018 as the region’s General Data Protection Regulation came into effect.
Adtech M&A has gotten off to a slow start this year. Deal volume was down 35% in the second quarter of 2023, compared with the year-ago quarter, according to the investment bank LUMA Partners.
Notable recent deals have included ad verification firm DoubleVerify acquiring AI company Scibids, PE firm Novacap acquiring TV adtech company Cadent in a deal worth around $600 million, and MediaMath being bought out of bankruptcy by fellow adtech firm Infillion for $22 million.
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