Novacap has agreed to acquire Nasdaq-listed Integral Ad Science (IAS) in a $1.9bn transaction, marking one of the year’s largest private equity buyouts in the digital advertising sector.

The Canadian private equity firm, which manages over $10bn in assets, will pay $10.30 per share in cash, representing a 22% premium to IAS’ last closing price. IAS shares surged nearly 20% in premarket trading following the announcement.

IAS provides ad verification, fraud detection, and optimisation services to global brands and agencies, ensuring that digital advertising campaigns are effective and reach their intended audiences. Following completion of the deal, expected by year-end, IAS will be taken private.

The acquisition highlights growing private equity interest in technology and software businesses, particularly those leveraging artificial intelligence to drive performance and scalability. Thoma Bravo has led similar activity in recent months, including its buyouts of customer engagement platform Verint Systems and HR software provider Dayforce.

For Novacap, the deal marks a significant expansion into digital advertising technology, underscoring its strategy to invest in high-growth sectors with strong long-term demand.

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