Adludio - Case Update

An AI-powered mobile ad platform remains for sale despite strong initial interest from the market.

Adludio is a digital marketing innovator in the AdTech sector with operations in the UK, US, Hong Kong, Singapore, and Taiwan. The company was funded by a mix of equity and convertible loan notes (totalling £7.5m) and had developed an AI-driven mobile advertising platform in partnership with a highly skilled workforce based in Addis Ababa, Ethiopia.

However, the terms of further funding support could not be agreed and BDO’s Special Situations M&A team were instructed to explore the market for either an investment or sale. Over 260 potentially interested parties were approached including trade, private equity, venture capital and distressed asset investors. Despite initial interest being strong and technical due diligence being positive, no party advanced an acceptable offer.

To protect the value of in-flight campaigns in the UK and its international subsidiaries, the company entered administration on 23 August, with Matthew Tait and Simon Girling of BDO appointed as joint administrators.

Post-appointment, a further sale process was implemented for the AI platform. Again, whilst interest and technical diligence was positive, no offers were received. The asset remains for sale.

Separately, a funding and support strategy was devised and implemented to ensure the delivery of campaigns and the preservation of international subsidiary value, thereby preserving intercompany loan and equity value realisations. This process has been finalised with all campaigns successfully delivered. Adludio’s non-UK subsidiaries are now being wound down.

Members of the finance, HR and technical functions have been retained to assist the administrators and it is anticipated that preferential and secondary preferential creditors will be paid in full, as well as a significant distribution to unsecured creditors.