13th Oct 2014 07:00
LONDON (Alliance News) - Matomy Media Group Ltd Monday said French advertising and PR giant Publicis Groupe has acquired a 20% equity stake in the company, and has the option to acquire a further 4.9% shareholding within the next 45 days.
In a statement, Matomy Media, a digital performance-based advertising company, said Publicis Groupe will acquire 17.9 million shares from existing Matomy shareholders for 227 pence per share, representing a 20% stake in the company and making the deal worth GBP40.6 million.
It said Publicis has also been granted an irrevocable option, valid for 45 days, to acquire a further 4.4 million shares, worth a further 4.9% stake, from its shareholders for the same price.
Exercising that option would bring Publicis' shareholding in Matomy Media to 24.9%, making the total potential deal worth GBP50.6 million. Matomy Media said Publicis would be its biggest shareholder. Its second biggest shareholder would be Ilan Shiloah, its current chairman, who is selling 8.94% in the company to Publicis. His shareholding in Matomy Media will be reduced to 15.44%.
"Matomy believes this investment is a significant endorsement of its business model and that this closer relationship will allow access to Publicis Groupe's global presence and relationships, including leading advertisers who are currently, or soon will be, looking for a performance-based pricing model for their digital advertising campaigns. Matomy also expects that the relationship will lead to further selling of its performance-based advertising services into the media buying activities of Publicis Groupe, which will aid Matomy's global expansion ambitions," said Chairman Ilan Shiloah in the statement.
In the same statement Monday, Matomy Media said trading since the end of its first half, has continued in line with its expectations, and it is in an advanced stage of negotiation in regards to a bolt-on acquisition of a European company, which it said would enhance its mobile offering. Matomy said it will update the market in due course.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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