MATOMY ANNOUNCES STRATEGIC INVESTMENT IN PARTNERSHIP WITH PUBLICIS GROUPE
Publicis Groupe to acquire up to 24.9% of Matomy, the global leader in ‘pure’ performance advertising, in order to accelerate growth in performance-based advertising
Matomy Media Group Ltd. (LSE:MTMY), one of the world’s leading digital performance-based advertising companies, has agreed to a strategic partnership with Publicis Groupe (Euronext Paris FR0000130577, CAC 40) through which Publicis Groupe will acquire 20% of Matomy’s shares at a price of 227 pence per share. In addition, Publicis Groupe has been granted an irrevocable option to acquire a further 4.9% of Matomy’s shares. Through this investment, Publicis Groupe and Matomy will together build the global leader in “pure” performance advertising.
Commenting on the investment, Maurice Lévy, Chairman and CEO, Publicis Groupe, said:
“Tel Aviv is second only to the Silicon Valley in technological innovation and patents. Matomy is fuelled by the innovators and technology experts of Israel and has quickly risen to the top of this important market by creating a world-leading, state-of-the-art platform. At Publicis Groupe, we make it a priority to invest in the brightest and most promising talent and technology that will give our clients around the world unrivalled access to these services. We have pioneered and invested in new technology, open platforms and partnerships. With Matomy, we will continue to build and promote an open environment for the exchange of ideas and innovation, essential to staying on top in today’s transformational digital age.”
Ilan Shiloah, Chairman of Matomy, added:
“We are seeing an impressive transformation in the digital advertising industry, and the ‘pure’ performance-based advertising space is an area of high growth potential fuelled by innovation and technology across all channels. Our vision is to build the best performance-based media company in the world, and with Publicis Groupe becoming our largest shareholder, we will be able to create a more mature and sustainable ecosystem, providing marketers with an unprecedented ability to accurately engage, acquire and retain customers.”
The partnership will enable the two companies to build together the global leader in “pure” performance-based advertising through the strategic alliance of Publicis Groupe’s innovative digital advertising and media buying capabilities and Matomy’s performance-based advertising solutions. 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.
In July 2014, Matomy completed its IPO on the LSE, following a strong first half of 2014 in which revenue increased by 20% to $129.1 million (H1 2013: $107.9 million) on a pro forma basis, and adjusted EBITDA rose by 61% to $12.7 million (H1 2013: $7.9 million), also on a pro forma basis, boosted by increased mobile and video activity.
Today Matomy has operations in more than 100 countries with nearly 400 experts around the world. Matomy boasts more than 1,600 active clients, including American Express, HSBC and Experian, in addition to 16,000-plus registered digital media sources.
Rothschild acted as the exclusive financial advisor, and Simmons & Simmons acted as the UK legal advisor to Matomy’s core shareholders.
About Publicis Groupe
Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is one of the world’s leading communications groups. The Groupe offers a full range of services and skills: digital (DigitasLBi, Razorfish, Rosetta, VivaKi, Nurun), advertising (BBH, Leo Burnett, Publicis Worldwide, Saatchi & Saatchi), public affairs, corporate communications and events (MSLGROUP), media strategy, planning and buying (Starcom MediaVest Group and ZenithOptimedia), healthcare communications, with Publicis Healthcare Communications Group (PHCG), and finally, brand asset production with Prodigious. Present in 108 countries, the Groupe employs 63,000 professionals.
Matomy Media Group (LSE: MTMY) is a global digital performance-based advertising company. Working across Web, social media and mobile platforms, Matomy Media Group offers advertisers, networks and publishers a range of opportunities integrated through one gateway, including an award-winning affiliate network, display ad network, mobile advertising solutions, email marketing, search and social marketing, video and virtual currency platforms.
Matomy Media Group Ltd.