London web firm Hive sold to U.S. tech business for $60M

Article content

A London web development business has been sold for $60 million to a billion-dollar New York-based technology firm.

Article content

Hive Media Group on Richmond Street has been snapped up by OpenWeb, the New York company announced Wednesday morning.

The sale will help Hive to consolidate and grow here in London and it is already looking for more workers, said Justin Ogglesby, vice-president audience development with Hive.

“This will accelerate our growth. We have a strong leadership team here,” he said.

“Everyone here is very excited. OpenWeb recently reached a billion-dollar valuation. It has a young, dynamic leadership team. It is exciting to be part of this.”

Hive has 60 employees, 30 in London, and already has about 10 job postings as the investment from OpenWeb will grow the business, Ogglesby added.

The sale makes sense for Hive as it means they will be run by a much larger technology business with deeper pockets.

Article content

“It allows us to innovate, to develop tools, to keep growing in the industry,” Ogglesby said.

Hive is an online business that develops websites and creates content for the web, including videos and technology to help sites gain more users.

“We look at publishing through a different lens. It is the science behind technology. We are a data company,” Ogglesby said.

OpenWeb “helps moderate online conversations,” he added. Specifically, it creates technology for businesses to offer up comments on websites.

“This is fantastic news,” said Kapil Lakhotia, chief executive of the London Economic Development Corp. “Hive joins a growing number of technology companies in London that have been acquired and these investments are fuelling growth locally. We have seen a lot of growth in the tech sector.”

Article content

There are about 400 technology positions open in London, he added.

“The digital economy in London is certainly getting noticed.”

OpenWeb works with more than 1,000 businesses hosting more than 100 million active users a month. It was founded in 2012 and has offices in Tel Aviv and Kyiv.

Hive will operate as an independent business, said Ogglesby. Guy Yeshua and Stacy Abraham will remain as chief executive officer and chief operating officer, respectively. They will join OpenWeb’s executive team.

With the Hive acquisition, OpenWeb will employ more than 225.

“We are thrilled to welcome Hive Media to the OpenWeb team,” Nadav Shoval, chief executive and co-founder of OpenWeb, said in a release.

“Right now, publishers are looking for the best technology available to improve revenue and own the relationships with their audiences. With this acquisition, we’re doubling down on these efforts, building even greater capacity for innovation and value to our publishing partners, who aim to have more connection with their audiences.”

The sale price of $60 million is a mix of cash and stock, stated a release.

Hive also has offices in California and in Israel. Hive Media Group was founded in 2016 by Daniel Sagis, Yeshua and Abraham.

[email protected]

Twitter.com/NormatLFPress