A SCOTTISH tech business that allows companies to measure the impact of their television advertising has been sold for $160 million in a deal that will net bumper windfalls for high-profile investors.

TV Squared, which was founded by entrepreneur Calum Smeaton in 2012, has been acquired by Innovid, a New York-listed advertising delivery and management platform.

The deal looks to have brought a major payday for Sir Tom Hunter’s West Coast Capital vehicle, the largest shareholder in TVSquared with a stake of around 30 per cent. Other major investors included 4J Studios, the Scottish gaming developer founded by Chris van der Kuyl and Paddy Burns. Mr van der Kuyl was the chairman of TVSquared.

The deal for TVSquared consists of $100m in cash, as well as “additional stock consideration”.

TVSquared expects to book revenue of $20m to $22m for its 2021 financial year.

Mr Smeaton will step down as chief executive on completion of the acquisition, after which he will take on a strategy role to support the integration. Jo Kinsella, president of TVSquared, will join the Innovid executive team.

Mr Smeaton said: "Innovid and TVSquared share complementary visions to transform TV measurement through a comprehensive view of audiences across all devices and platforms worldwide. Joining forces establishes a cross-platform measurement solution that maps one of the largest datasets of audiences, homes, and devices, at scale, across linear, CTV, and digital video.”

Zvika Netter, chief executive and co-founder of Innovid, said: “In acquiring TVSquared, we aim to provide the most complete view of the total TV and digital universe through a scalable, currency-grade measurement platform.

"Additionally, we immediately accelerate and broaden our scope globally, as brands, agencies, publishers, and broadcasters on six continents rely on TVSquared to maximise reach, identify the right audiences and drive business growth with TV. As the market demands greater accountability, Innovid and TVSquared are reimagining the future of cross-platform TV measurement together.”