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Viola Private Equity Will Invest $17million to Acquire 21% of Adsmarket
Jul 13, 2010 (12:07 PM EDT)
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 /PRNewswire/ -- 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.email@example.com Mobile: +972-545-509025 Office: +972-3-7696660 http://www.adsmarket.com