Benzinga | Jun 16, 2021 07:01AM EDT

VEON Acquires Russian AdTech Platform OTM For Undisclosed Sum

* Connectivity and internet services provider VEON Ltd (NASDAQ:VEON) has acquired a majority stake in OTM, a technology platform for automating and planning online advertising purchases in Russia.

* The financial terms of the transaction remain undisclosed.

* The arrangement will significantly strengthen Beeline's position in the AdTech market and enable VEON to expand OTM's operations into other markets served by VEON's mobile operators.

* The acquisition builds on VEON's ongoing transformation into a digital operator.

* OTM will remain a separate operating company as part of the VEON Group, managed by its current management team.

* This transaction will boost AdTech services provided by Beeline Russia, and provide a platform for VEON's expansion into the market through its other digital operators, VEON CEO Kaan Terzioglu stated. The digital advertising market in Russia is forecasted to grow from $4 billion to $6 billion in five years, Terzioglu added.

* VEON held $1.2 billion in cash and equivalents as of Mar. 31, 2021.

* Price action: VEON shares traded higher by 1.18% at $1.72 in the premarket session on the last check Wednesday.