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Admission and First Day of Dealings

14th Feb 2013 07:00

RNS Number : 8451X
Digital Globe Services Limited
14 February 2013
 

Digital Globe Services, Ltd.

(the "Company" and together with its subsidiaries "DGS")

Admission and First Day of Dealings

 

Digital Globe Services, Ltd. (AIM: DGS), a leading provider of outsourced online customer acquisition solutions for large, consumer-facing corporations, is pleased to announce at 0800 today the admission to trading on AIM of its entire issued and to be issued share capital and the commencement of dealings in depository interests over its common shares of $0.001 each ("Common Shares").

 

Admission Details:

 

·; The offer has raised approximately £13.1 million (c. $20.5 million) before expenses through the placing of 3,211,288 new shares and 5,017,638 sale shares (the "Placing").

·; Gross proceeds to the Company of approximately £5.1 million (c. $8.0 million) and to The Resource Group International ("TRGI"), the selling shareholder, of approximately £8.0 million (c $12.5 million).

·; The total number of Common Shares in issue at Admission is 29,666,955, giving the Company a market capitalisation of approximately £47.2 million (c. $73.9 million) at the placing price of 159 pence (c. 249 US cents) per Common Share.

·; The purpose of the IPO is to provide access to capital, raise the profile of DGS and accelerate the expansion of the business into new geographical markets and industry verticals.

·; N+1 Singer is acting as Nominated Adviser and Broker to the Company.

 

All prices are based on an exchange rate of US$1.5668: £1, being the prevailing rate at the latest practicable date prior to dispatch of placing letters

 

Online Customer Acquisition & DGS

 

DGS is a provider of outsourced online customer acquisition solutions principally to large, consumer-facing organisations and to clients offering products or services to business users. A business seeking to attract customers online can do so by procuring advertising from search engines and other providers, directing consumer attention to a website or a contact centre, and then selling interested consumers its products or services. DGS provides outsourced solutions to businesses for some or all of these components of online customer acquisition.

 

DGS procures paid search advertising, develops and manages branded web sales portals and contact centres on behalf of its clients, and delivers customers to them, receiving a fee for each customer acquired.

 

The Company's technology, the dgSmart Platform, uses proprietary software, algorithms, processes and databases of customer interactions, comprising information on nearly 10 million search terms in over 6,000 geographic locations, to determine the optimal price to pay to ensure effective paid search advertising placement. The technology also allows DGS to modify the content of a paid search advertisement to increase its contextual relevance to the end user's search terms and further enhance its effective placement. This optimization of paid search procurement and placement, followed by customer support through managed websites and contact centres, promotes the conversion of interested consumers to customers. DGS's proprietary technology touches all points of this value chain, delivering not only effective results, but also a cost-efficient platform.

 

DGS's evaluation of data provided by its largest clients indicates that DGS delivers customers with a higher customer lifetime value, higher ensuing installation rates, and a higher number of products per installation and higher average revenue per customer.

 

The Director's believe that the DGS's dgSmart Platform is a key driver of its success, having enabled DGS to consistently outperform and disrupt competitors over the past four years while achieving a growth rate significantly ahead of its peer group. DGS has been consistently profitable establishing a track record of increasing revenue, profitability, and shareholder dividends. From the calendar year ended 31 December 2010 to the year ended 31 December 2012, DGS has grown revenue at a CAGR of 76 per cent. and grown EBITDA at a CAGR of 81 per cent.

 

Commenting on the successful Placing and Admission to AIM, Jeff Cox, CEO and Founder of DGS said:

 

"We have been delighted by the support DGS has received from UK investors and look forward to creating shareholder value as a public company.

 

"As a profitable, cash generative business, we believe AIM provides DGS with an excellent platform for the next stage of the Company's development, supporting our entry into new geographies and industry verticals as we seek to establish DGS as the global leader in outsourced online customer acquisition."

 

The DGS admission document will be made available on the Company's website: www.dgsworld.com on or prior to Admission becoming effective.

 

For further information please contact:

 

Digital Globe Services, Ltd.

 www.dgsworld.com

Jeff Cox, CEO

+1 303 736 2105

Bruce Casely, CFO

N+1 Singer

Shaun Dobson / Aubrey Powell/ Matt Thomas

+44 20 7496 3000

Newgate Threadneedle

+44 20 7653 9850

Caroline Evans-Jones / Josh Royston / Hilary Millar

 

Overview of DGS

 

Founded in 2008 and headquartered in Castle Rock, Colorado, USA, DGS is a specialist provider of outsourced online customer acquisition solutions for large, consumer-facing corporations. DGS delivers customers to its clients through optimised paid search, integrated websites and contact centre support, receiving a fee for each customer acquired for its clients.

 

DGS is seeking to establish itself as the leading international provider of outsourced online customer acquisition services, through its focus on having the premier technology platform for pricing and procuring paid search advertising on a cost effective basis. Paid search refers to the auction process for key search terms that search providers run and in which prospective advertisers, or their agents, compete in order to have their advertising or search results displayed.

 

By using its optimizing technology platform, dgSmart, and its experience of website management, efficient contact centre operations and other process expertise, DGS is able to bid appropriately and cost effectively for search terms in order to achieve conversion rates that deliver profitable, high quality customers to its clients.

 

DGS employs approximately 430 staff both in North America and internationally. The Company currently has over 30 direct and indirect client relationships globally, many of which are with companies in the US Fortune 500. In 2012, DGS commenced operations in Canada and Mexico, and is pursuing further growth opportunities in Latin America, Europe, and Asia Pacific. DGS has also recently started providing its customer acquisition services to the electric utility industry and renewable energy sector, and is examining additional opportunities in the insurance, retail banking, and consumer technology sectors.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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