Gurbaksh Chahal's Gravity4 is trying to acquire another public ad tech company just a week after its last takeover bid was rejected (TRADST)
Ad tech company Gravity4 has made a 564,700,000 kr ($67.4 million) bid to acquire publicly traded rival Swedish company TradeDoubler.
The news is startling for a number of reasons:
Chahal has maintained his innocence in the first case and has said he only pleaded guilty to avoid a “witch hunt.” Neither Chahal or Gravity4 has responded to requests for comment about the second reported arrest.
TradeDoubler would not comment on the Gravity4 acquisition bid when contacted by Business Insider.
A press release from Gravity4 reads:
Gravity4 has announced that it board of directors has doubled its offer of 282,350,000 kr for publicly traded TradeDoubler AB headquartered in Sweden.
Gravity4 will purchase publicly traded TradeDoubler AB 282,350,000 kr (equivalent to 6.67 kr per share) in cash upon closing, additional to the equivalent of that amount in Gravity4 stock. This offer would value the full transaction at 564,700,000 kr (equivalent to 13.4 kr per share).
Chahal is the former founder and CEO of another ad tech company, RadiumOne. He was fired by his board after the domestic abuse accusations became public.
He once, unsuccessfully, tried to buy back his former company, but went on to start another: Gravity4. In the past nine months it has made nine acquisitions of small ad tech companies such as Triggit and, most recently , AdX Search. However, Business Insider understands those deals are modest, and mostly in stock.
Chahal claims his new company is valued at $1 billion.
.@Gravity4 valued at $1 billion, buys @adx_search to take on @Oracle, @salesforce & @Adobe. http://t.co/PjlG8qzrLb
— Gurbaksh Chahal (@gchahal) May 4, 2015
Meanwhile, Chahal and his company are being sued by Gravity4’s former SVP of global marketing Erika Alonso in relation to alleged gender and age discrimination — she also claims Chahal, then her boss, illegally spied on her during a job interview, and she noticed a “constant theme of revenge” directed toward Chahal’s previous company RadiumOne.
Chahal and Gravity4 deny the claims made in the suit.
SEE ALSO: There’s something weird happening at $500 million ad-tech startup RadiumOne, and the way we found out about it is even stranger
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