Viola Private Equity Will Invest $17million to Acquire 21% of Adsmarket
By Adsmarket, PRNEMonday, July 12, 2010
Adsmarket, an Established Internet Advertising Company, the 3rd Largest Company in Europe in This Field, Employs Around 140 People, Mainly in Israel; was Founded in 2007 and Expect Finishing 2010 With Recorded Sales of $80M, Compared to $7M in 2007
TEL AVIV, Israel, July 13, 2010 - Viola Private Equity will invest $17M in Adsmarket, an established and
proven international media performance and internet advertising company
valued at $75M (valuation is pre-money and includes various mechanisms
relating to yield and downside protection) and will hold 21% of the company
shares.
Of the full investment amount, $12M will be used to acquire shares from
current shareholders and $5M will be invested in the Company. At the
completion of the investment, the value of the Company will be $80M and the
new ownership structure will be: Ilan Shiloach, the Company's Chairman will
hold 29%, Viola Private Equity will hold 21%, the Druker-Orzel Group will
hold 16%, the Tarlovsky Group will hold 16%, the Moyal Group will hold 9% and
the Adsmarket employees will hold 9%. Osnat Ronen and Harel Beit-On, partners
in Viola Private Equity, will join the Company's Board of Directors. The
agreement was signed at the beginning of July and the closing of the deal is
expected to take place later in the month.
Adsmarket was established in 2007 by Ofer Druker, the Group's CEO, Adi
Orzel, the CEO of the Company subsidiary, Xtend, and the Deputy CEO, and Kfir
Moyal, a Company Director. Over the last 3 years the Company exhibited rapid
growth and in 2010 is expected to finish the year with sales of $80M,
compared to $60M in 2009, $36M in 2008 and $7M in 2007.
Adsmarket was primarily active in the European market. A year ago the
Company entered the South American market and has recently entered the
American market. The Company is active in a number of areas: mobile content,
games, travel, software and more. Xtend, which operates in the fields of
display advertising and SEM, manages a global advertising network and
displays approximately 20 billion advertisements every month in thousands of
websites. Adsmarket, based in Tel Aviv, employs around 140 people, 120 of
whom are employed in Israel.
According to Osnat Ronen: "Viola Private Equity has marked the field of
internet media as a particularly interesting field for investment for a
number of reasons, but especially due to the high global status Israel has
acquired in this industry. Within the framework of Viola PE's investment
strategy, the Fund decided to invest in Adsmarket due to the potential growth
the Fund sees for the Company and its ability to continue to strengthen its
status as a leader in its market fields, whilst continuing to show
profitability. This is due primarily to the experienced and dynamic team that
has led the Company to its impressive achievements until now and which will
continue to take the Company forward".
According to Ilan Shiloach: "In Viola Private Equity we have found
experienced partners who, together with us, will help the Company reach its
future goals. The investment by Viola in Adsmarket will support the
continuing growth of the Company and will be the basis for the Company's
entry into new markets, primarily the American market, by expanding the
Company's marketing network and recruiting new employees".
About Viola Private Equity
Viola Private Equity is a buyout and growth capital technology fund
focusing on investments in established, private or public technology
companies. The Fund may also invest in other growth phase companies with
proven activity outside of Israel. The Fund, with $164M under management,
acquires substantial holdings in companies, by investing directly in the
companies and/or acquiring holdings from existing shareholders, with the aim
of leading and contributing to their development and growth. Amongst Viola
PE's investments are: Aeronautics Systems, Amiad Filtration Systems, Orad
High-Tech Systems and MobileAccess.
Viola Private Equity is managed by four seasoned partners - Harel
Beit-On, Osnat Ronen, Jonathan Kolber and Sami Totah - all of whom have
extensive private equity investment and company building experience.
Viola Private Equity is an affiliate of the Viola Group, a private equity
investment group with over $1.8B under management that focuses on
technology-based investment opportunities in Israel.
Contact Details Mor Meroz Marketing Manager Mor.m@adsmarket.com Mobile: +972-545-509025 Office: +972-3-7696660 www.adsmarket.com
Contact Details: Mor Meroz, Marketing Manager, Mor.m at adsmarket.com, Mobile: +972-545-509025, Office: +972-3-7696660
Tags: Adsmarket, Israel, July 13, Tel aviv