Kin Group to buy Bidstack for £6.8m

AIM-listed Kin Group has agreed to buy virtual billboard advertiser Bidstack for around £6.8m.

The company also said on Friday that it has raised approximately £3.5m in a placing that was "significantly" over-subscribed, in order to provide working capital to finance the growth of the enlarged group.

Kin had announced back in June that it had invested £400,000 in Bidstack and that it was in discussions that might lead to the acquisition of the business.

Bidstack provides native in-game advertising that is targeted and automated, serving the global video games industry across multiple platforms. Its technology inserts adverts into natural advertising space within video games. Kin said the adverts, which appear "authentic" and "natural", cannot be excluded with ad-blocking software and allow advertisers to target users based on age, gender and location.

Chairman Donald Stewart said: "Bidstack has developed proprietary technology which links programmatic advertising platforms directly into video games, one of the largest entertainment industries in the world, enabling targeted native advertising to be inserted seamlessly, dynamically and in real time.

"Ad tech is an exciting, new and growing sector. Bidstack's technology, in-depth knowledge of the market and existing relationships (including Sega), combined with its first mover advantage, positions the business well to become a market leader in native advertising in the global video games sector. I believe this presents Kin and its shareholders with an exciting opportunity to invest in a business with significant potential in a developing technology sector."