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07|06|2009 07:34 am EDT

Sedo Parent AdLink to sell Display Marketing Unit

by Frank Michlick in Categories: News

This morning Sedo parent company Adlink announced that they were selling their display ad group to the French Hi-Media group and in turn receives a 10.7% stake in the Hi-Media group and 12.2 Million Euro in Cash. Adlink retains ownership of their affiliate marketing (affilinet) component as well as Sedo. Adlink remains part of the United IInternet group.

More details after the jump.

From the press release:

AdLINK Media [ed. the display ad unit] is valued at 29.4 million euros and will be transferred to Hi-media net of any cash and of all debt. According to the terms of the agreement protocol, the consideration paid for this transfer will be:

  • 3,940,000 newly created shares in consideration for a portion of the AdLINK Media shares;
  • 795,000 existing shares currently held by the Hi-media Group for the remaining shares of AdLINK Media plus;
  • A deferred payment in the form of a vendor loan of 12.2 million euros.

This vendor loan which will end the 30th of June 2011, is repayable in fine and will have an interest rate of 3.7% for the first 12 months and then 5% afterwards. The shares to be held post acquisition by AdLINK AG will be subject to a one year lockup period.

[…] In recent years, AdLINK Media has achieved EBITDA between 0.5% to 3.6%(5) but there is potential for significant improvement in margins of the combined entity and, taking into account the level of cost synergies of around 5 million euros for the full year, the transaction should be particularly accretive as early as 2010.

About Hi-Media (from the press release)

Hi-media, the online media group, is one of the top Internet publisher in the world with more than 50 million unique visitors per month on its proprietary websites. Hi-media is also a leading European player in online advertising and electronic payment. Its business model relies thus on two different sources of revenues: online advertising via its dedicated ad network Hi-media Network and online content monetization via its micropayment platform Allopass. The group which operates in 6 European countries, China, USA and Brazil employs more than 370 people and posted in 2008 135 million euros in sales. Independent since its creation in 1996, the company is listed since 2000 on the Euronext Eurolist Paris (Eurolist C) and is included in the SBF 250, CAC IT and CAC Small 90. ISIN code: FR0000075988. Hi-media qualifies for FCPI as it received the OSEO label of “innovating company”.

There are no changes to the ownership of Sedo. United Internet had assigned Morgan Stanley in February of 2008 in order to investigate a potential sale of the Adlink group.

[via Press Release, Techcrunch]


1 Comment

[…] 07/06/2009 Forum: Affiliate Marketing Posted By: Myssion Post Time: July 6th, 2009 at 5:06:01 am Sedo Parent AdLink to sell Display Marketing Unit – 07/06/2009 This morning Sedo parent company Adlink announced that they were […]

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