Adtech firm GroundTruth hires bankers to pursue a possible sale

• GroundTruth, which uses location data to target ads, has hired the investment bank JEGI Clarity.
• It’s looking to explore its strategic options, which could include a possible asset sale.
• GroundTruth previously attempted to sell its consumer app WeatherBug in 2019, but talks fell apart.

According to three people familiar with the matter, GroundTruth, an adtech company that uses location data to target ads and owns the WeatherBug app, has hired investment bank JEGI Clarity to explore its strategic options, which could include the sale of all or part of the business.

GroundTruth and JEGI Clarity did not respond immediately to requests for comment.

GroundTruth, formerly known as xAd, was founded in 2003 and has raised more than $160 million in funding, according to PitchBook.

GroundTruth’s advertising platform is powered by its location data, which enables advertisers to model their campaigns based on real-world data, such as store visits. According to its website, it has recently worked with brands such as Hooters, The Florida Keys, and Giltuss.

Advertisers can also incorporate GroundTruth’s data into their preferred ad-buying platform, and media companies such as iHeartRadio, Cox, and Scripps have used it to improve their advertising offerings.

In 2016, the company purchased the consumer app WeatherBug, for which it hosts ads and collects anonymized data from its more than 20 million users.

According to two sources familiar with the situation, GroundTruth almost reached an agreement to sell WeatherBug in 2019.

According to people familiar with the process, the current plan is to sell WeatherBug and GroundTruth separately. That strategy could change.

As new privacy laws take effect around the world, companies that deal with location data are coming under increased scrutiny. GroundTruth’s European operations were shut down in 2018 as the region’s General Data Protection Regulation went into effect.

This year’s adtech M&A activity has been slow. According to the investment bank LUMA Partners, deal volume was down 35% in the second quarter of 2023 compared to the previous quarter.

Notable recent transactions include ad verification firm DoubleVerify acquiring AI company Scibids, private equity firm Novacap acquiring TV adtech company Cadent in a $600 million deal, and MediaMath being bought out of bankruptcy by fellow adtech firm Infillion for $22 million.