EANS-News: AdLINK Group combines display unit AdLINK Media with Hi-media in exchange for major shareholding - Transaction creates market leading ad network in Europe
Montabaur (euro adhoc) -
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merger, acquisition and takeover
Montabaur, July 6, 2009. The AdLINK Group (AdLINK Internet Media AG) sells its division for display marketing, AdLINK Media, to Hi-media and becomes major shareholder in the French online media and micropayment company. AdLINK Group will focus operational activities and further investments on performance based digital marketing and its specialists affilinet (affiliate and performance marketing) and Sedo (domain marketing).
AdLINK Group combines its display unit AdLINK Media with Hi-media´s advertising business. In return, the AdLINK Group will receive 10.7 % of shares in Hi-media S.A. (4,735,000 shares) plus around EUR 12.2 million in cash. For this cash component AdLINK Group will grant Hi-media a vendor loan at a standard market interest rate. The vendor loan is to be repaid not later than June 30, 2011 in cash. AdLINK Group will also have the opportunity to increase its position in Hi-media and to subscribe, in proportion of its stake, to any increase in capital Hi-media might decide to engage in. In the case that such capital increase is made when share price is below EUR 3.63, AdLINK Group commits to subscribe to an amount of EUR 12.2 million at a share price of EUR 3.63 per share.
Combined, AdLINK Media and Hi-media reach more than 126 million unique users in Europe in 9 markets. The unique combination of two premium ad networks together with Hi-media´s own publishers and micropayment services (Allopass) offer true value add to advertisers, agencies and website owners.
"By combining AdLINK Media, our display marketing business, into Hi-media, and becoming a major shareholder of the combined Hi-media Group, we are contributing to the consolidation of the market. We will, in addition, benefit from the significant synergies being created from economies of scale as well as from cross-selling," says Stephane Cordier, CEO of AdLINK Group.
"This transaction allows us to benefit from the upside in the newly created European leader for display marketing, Hi-media Group, as well as focusing our investments and management focus on digital performance marketing. Performance marketing has become a driver in online spendings and been able to generate solid returns by using network effects and scaling technology," says Andreas Janssen, CFO of AdLINK Group.
AdLINK Group therefore now holds two performance marketing businesses:
Sedo (www.sedo.com) is Europe´s market leader for domain marketing and the global market leader in secondary domain trading with over 15 million Internet domain names for sale. Sedo helps businesses to acquire domain names and to conduct performance marketing campaigns through targeted domain names. It also helps domain owners to maximize earnings on domain names.
affilinet (www.affili.net) is a leading affiliate marketing network in Europe. affilinet helps advertisers to conduct affiliate programs and performance marketing campaigns through targeted web sites in order to generate leads and sales.
Cyril Zimmermann, founder and CEO of Hi-media group says: "With the acquisition of AdLINK Media, Hi-media becomes one of the major players in the European online advertising network market. For several years, we have been developing a unique model, building strong synergies between our advertising network and our micropayment platform Allopass, whose deployment in Europe will be accelerated thanks to the acquisition."
About AdLINK Internet Media AG (ISIN DE 0005490155)
AdLINK Internet Media AG is Europe´s leading performance marketing company. Its two subsidiaries affilinet (www.affili.net) and Sedo (www.sedo.com) in combination reach over 100 million unique users. By serving sophisticated ad technology, we convert visitors into leads and sales on over 5 million Internet domain names and web sites.
Further information at www.adlinkgroup.net
end of announcement euro adhoc
Further inquiry note:
Marcus Schaps
Head of PR
AdLINK Internet Media AG
Elgendorfer Str. 57
56410 Montabaur
Germany
Tel: +49 (0) 2602 - 96 1319
Fax: +49 (0) 2602 - 96 1013
E-mail: presse@adlinkgroup.net
Branche: Online
ISIN: DE0005490155
WKN: 549015
Index: TecDAX, Prime All Share, Technologie All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade