Rentabiliweb Announces Acquisition of the Edencast Group
Rentabiliweb Announces Acquisition of the Edencast Group, a Performance Advertising Brokerage Specialized in Paid Search Engine Optimization and General-Interest Publishing
BRUSSELS, August 10, 2010 /PRNewswire-FirstCall/ -- Rentabiliweb is continuing its strategic development with the acquisition, with conditions precedent, of 100% of the shares of Edencast SAS, specialized in audience monetization, namely performance marketing and paid search engine optimization. For over four years, Rentabiliweb has called upon Edencast's expertise and has entrusted the firm with monetizing a part of its audience, accounting for more than 10% of the Group's sales. With this operation, the Group is securing one of its top clients and is thus reincorporating the profits of one of its leading business development agents into its consolidated books.
For 10 years, Edencast's success has been based on the development of technical and marketing tools that maximize conversion rates and minimize customer acquisition costs. The Edencast Group is expected to reach sales of EUR 11.2 million in 2010 with a Regulatory EBIT[1] of EUR 2 million. This level of growth is expected to continue in 2011 thanks in large part to the high level of synergy generated by this acquisition.
"The combination of the expertise of our two companies will have a positive impact on the profitability of all of our subsidiaries. Thanks to Edencast's high-level expertise in traffic acquisition, we are optimizing one of the key levers of the content monetization business: the cost of recruiting new customers," stated Jean-Baptiste Descroix-Vernier, Chairman of the Rentabiliweb Group, who added that "this operation is part of a tactical strategy to acquire medium-sized profitable targets whose technical and marketing expertise enable Rentabiliweb to enrich its range of services and make them even more profitable."
A profitable publishing portfolio with a high-quality targeted audience
Today specialized in online family games, social networks, and niche dating, as well as women's interest, health and well-being content, Rentabiliweb's digital entertainment package will, with the acquisition of Edencast, now include humor and news available on Internet and mobile phones, including:
- http://www.starwizz.com a general-interest news portal with an audience of over a half-million visits every month. - http://www.abrutis.com: this video entertainment site, the 2nd-ranked French language humor video site, generates an audience of 1.8 million visitors per month and features an iPhone application that has already been downloaded over 150,000 times since it was launched.
This operation gives Rentabiliweb access to Edencast's cumulative audience of over 3 million visitors generated per month at its own sites and up to 150 million visits at all of its affiliate networks.
With this operation, Rentabiliweb is consolidating a portfolio of several thousand targeted user profiles that, when added to those of the Group, will boost its sites and their cross-sales, as well as enrich its loyalty and cashback programs.
Technical and marketing expertise that minimizes customer recruitment costs
By bringing Edencast into the Group, Rentabiliweb will feature a set of tools geared towards minimizing client acquisition and recruitment costs and maximizing the conversion rate, i.e. the ratio between the number of subscriptions generated per visit and the number of visitors who consulted the service or site. Indeed, Edencast has expertise in all key search engine optimization strategies, namely paid acquisition, e-mail, data management and Customer Relationship Management (CRM).
The experience of a key player in paid search engine optimization on French-language markets combined with the Group's leadership in loyalty-generating entertainment content will enable it to publish a wide range of content worldwide at the lowest possible cost.
In all, the Group aims to build a base of 3 million targeted opt-in e-mail addresses to send out over 30 million e-mails per month.
Specifics of the operation
The acquisition involves 100% of the capital of Edencast SAS. The initial phase of the operation includes a cash payment of EUR 7.5 million and EUR 4 million in Rentabiliweb shares, i.e. a total of EUR 11.5 million upon signing of the contract. In addition, a second cash payment based on the operating results for 2010 and 2011 will be made.
As part of this operation, 617,934 Rentabiliweb shares will be created at the Board Meeting on 12 August 2010.
For the entire transaction, EUR 5 million will be secured, including one portion of pledged securities as provided for in the guarantee agreement signed by both parties.
Consistent with the market announcement following the EUR 10 million capital increase as part of the share's transfer onto Compartment C of the Euronext Paris and Brussels stock markets, Rentabiliweb has financed the cash portion of this operation with its own cash reserves. The Group's financial structure remains healthy, with a substantial cashflow, and it still has no debt, thus enabling Rentabiliweb to maintain its capacity to pursue its future aims, either by organic or external growth.
The operation will quickly be accretive for shareholders given the anticipated commercial synergy and economies of scale between the two groups.
When publishing its results for the first half of 2010 on 31 August, the Group will provide details on its new scope and strategy aims, and will inform the market of its sales and operating profit forecasts for the year.
Find this press release at: http://www.rentabiliweb.org/actualites/?p=2133 Previous press releases: - Rentabiliweb acquires Yves Rocher Group's Health and shopping portal (22 June 2010) - New momentum in growth in Q1 2010: + 38% organic growth (11 May 2010) - Rentabiliweb: excellent results for 2009; Increases for all indicators (23 March 2010)
About Rentabiliweb
Founded in 2002 by Jean-Baptiste Descroix-Vernier, The Rentabiliweb Group offers Internet professionals and webmasters the largest platform of website traffic monetization services, namely payment and micropayment solutions. It also runs affiliate programs, offers online advertising space brokerage and interactive voice services for offline media and provides renowned expertise in loyalty programs and Direct Marketing.
Rentabiliweb is also one of the premier French-language publishers, with a package of services spanning the full range of mass-market entertainment, from community services, family games and services for the general public to recommendations for Internet users, personal ads, dating services and more.
Listed on Compartment C of the Euronext Brussels and Paris stock markets, the Group today has 13 subsidiaries in Europe, Canada and Asia, employing 150 staff members around the world. In 2009, Rentabiliweb's sales topped EUR 65 million, with net profits of EUR 7.5 million.
Rentabiliweb is also a socially responsible company in its sectors of activity, and rigorously applies the ten principles laid out by the UN Global Compact. For more information, visit: www.rentabiliweb.org
---------------------------------
[1] The Regulatory EBIT is defined as the Edencast Group's EBIT over 12 months minus a) certain significant management expenses that will be adjustable starting in the second half of 2010, namely salaries; and b) asset depreciations posted in the books prior to the acquisition
Corporate Communications IMAGE SEPT Claire Doligez +33-(0)1-53-70-74-48 [email protected] Financial - Investor Communications CALYPTUS Mathieu Calleux +33-(0)1-53-65-37-91 [email protected]
SOURCE Rentabiliweb
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article