Following the announcement earlier this month of its new strategic partnership with French advertising company Publicis Groupe, Matomy Media Group (LSE:MTMY) today announces another strategic advancement in its digital performance-based advertising solution by acquiring Europe’s leading mobile programmatic advertising platform, MobFox, for a total consideration of $17.6 million.
Matomy has acquired MobFox, Europe's leading mobile advertising platform
Acquisition of mobile programmatic advertising company follows Matomy’s recent entry into a strategic partnership with Publicis Groupe
TEL AVIV and LONDON (28 October 2014) — Following the announcement earlier this month of its new strategic partnership with French advertising company Publicis Groupe, Matomy Media Group (LSE:MTMY) today announces another strategic advancement in its digital performance-based advertising solution by acquiring Europe’s leading mobile programmatic advertising platform, MobFox, for a total consideration of $17.6 million.
Through this investment, Matomy’s clients and media partners will gain access to innovative mobile programmatic advertising solutions, including demand- and supply-side-platforms (DSP and SSP) and a single gateway for mobile, video and native ad inventory management via a real-time bidding (RTB) marketplace.
Matomy is acquiring MobFox via an asset purchase transaction for a total consideration of $17.6 million, $10.1 million of which Matomy will pay in cash and $7.5 million of which in newly-issued shares, reflecting a price per share of 260 pence. MobFox’s shareholders may be entitled to an additional payment, commencing 24 months following the closing of the asset purchase transaction, based on MobFox’s 2015-17 financial performance.
MobFox’s revenue run-rate is $15 million – $17 million for 2014. Subsequent to the acquisition and integration of MobFox’s platform, the enhanced mobile activity of Matomy is expected to contribute approximately 20% of the company’s global revenue in FY2014 (on a pro-forma basis), up from 7% in FY2013. Matomy expects that MobFox’s bespoke technology will enable it to set a goal of 50% of revenues coming from mobile activity within less than five years.
As part of the acquisition, MobFox executives and other key personnel will join the Matomy team, which already has nine offices around the world, including its global headquarters in Israel, and regional headquarters in Germany, Spain, Mexico and the United States. MobFox’s London office will become Matomy’s UK branch office.
Commenting on the acquisition, Matomy CEO Ofer Druker said:
“The impressive growth of programmatic and mobile advertising has made it clear that both will form an important part of the future of digital advertising. MobFox has built an excellent mobile programmatic advertising solution, and its business fits perfectly into our vision, complementing our performance-based advertising capabilities. We make it a priority to invest in companies that have developed proven innovative technologies and solutions that will give our advertising clients and media partners unrivalled access to these services. With MobFox, we will continue to expand our capabilities in mobile and programmatic advertising, which are key growth engines for our business.”
Julian Zehetmayr, founder and CEO of MobFox, added:
“Companies in the mobile advertising industry constantly talk about the need for scale and quality in their operations, so partnering with a company like Matomy that offers both advertisers and publishers a global multi-channel performance-based advertising solution makes perfect sense. The resources and support of Matomy will help MobFox build upon our strategy of delivering innovative mobile programmatic advertising and monetisation technology and will drive further success for our customers. We look forward to leveraging Matomy’s expertise and sharing ours to make our combined solutions even better.”
Notes to Editors
Strategic rationale
Founded in 2010, MobFox is now a global leader in the multi-billion-dollar programmatic advertising industry, offering a one-stop, integrated mobile ad solution for publishers and advertisers. Publishers can manage their mobile, native and video ad revenue streams through the company’s SSP, while maximising worldwide direct sales and advertising revenue via the MobFox Real-Time Bidding Exchange and state-of-the-art traffic mediation technology. The MobFox DSP allows advertisers and agencies to run intelligent, optimised campaigns across its global publisher and app developer network by leveraging its programmatic media buying capabilities, as well as its unique traffic and reach.
MobFox works with more than 300 active advertisers and 10,000-plus registered publishers, as well as many leading mobile advertising companies, including Facebook Audience Network, Nexage, Inmobi, Mopub and Admob.
Matomy’s acquisition of MobFox is expected to strengthen its position in the large and growing mobile and programmatic advertising markets. According to eMarketer, worldwide mobile ad spend will reach $69.1 billion by 2016, up from $32.7 billion in 2014, while advertiser spend on mobile programmatic will grow to $14.2 billion by 2016 from an estimated $4.4 billion in 2014.
MobFox will gain access to Matomy’s global base of advertising clients, media partners and distribution channels in order to accelerate its expansion within the worldwide mobile and programmatic advertising industry. MobFox’s clients and publishers will continue to manage their activities through the company’s proprietary mobile ad platform, as well as take immediate advantage of Matomy’s global scale and multi-channel advertising solutions.
About Matomy Media Group
Matomy Media Group Ltd. (LSE:MTMY) is one of the world’s leading digital performance-based advertising companies. Working across Web, social media and mobile platforms, Matomy offers advertisers, media partners and publishers a range of opportunities to generate risk-free performance-based results, delivering quality, scale and speed by providing a single gateway to all digital media channels. Matomy’s marketing solutions include: a display ad network; mobile, social and video advertising; email marketing; search marketing and search engine optimization; a virtual currency platform; and domain monetisation.
For more information:
www.Matomy.com
Facebook: www.facebook.com/matomymediagroup
Follow us on Twitter: @MatomyGroup
LinkedIn: www.linkedin.com/company/matomy-media-group
Matomy Media Group is a global digital performance-based marketing company. Working across Web, social media and mobile platforms, Matomy Media Group offers advertisers, networks and publishers a range of opportunities integrated through one gateway, including an award-winning affiliate network, display ad network, mobile advertising solutions, email marketing, search and social marketing, video and virtual currency platforms.
For more information visit www.matomy.com and follow Matomy on Facebook www.facebook.com/matomymediagroup.
Contact(s):
Keith Trivitt
Director, Corporate Communications
Email: ktrivitt@matomy.com
Phone: +1 646.264.0144
Cell Phone: +1 417.299.5996