German-based financial lead generator BrokerDeal.de was launched in 2011 in Munich and is today considered one of the top-five sites in financial services in Germany. The company is top-ranked in terms of search engine optimization (“SEO”) with regard to several key financial terms. Through the acquisition, Catena Media strengthens its already leading finance affiliate position in Germany. The acquired assets currently generate quarterly sales of about EUR 300.000.
”This acquisition is of strategic importance to Catena Media. In November last year, we took the first step in entering a new vertical – the financial services market. Since then, we have acquired assets and staffed up our organization. We are now in a position to speed up this strategic initiative, and the acquisition of BrokerDeal.de demonstrates that this is happing right now,” says Henrik Persson Ekdahl, Acting CEO of Catena Media.
BrokerDeal.de is mainly focusing on larger private investors and is therefore a great complement to Catena Media’s earlier acquisition of the affiliate assets of Beyondbits Media, which included Aktiendepot.com and Qomparo.de, among other sites.
“I’m proud to welcome BrokerDeal.de to the Catena Media family and I’m very glad that Michael Hinterleitner, MD of BrokerDeal.de, has decided to remain with the company following the acquisition. I believe this constitutes a solid foundation for continued growth and profitability,” says Henrik Persson Ekdahl, Acting CEO of Catena Media.
The expected total acquisition cost is EUR 3.6 million with the initial purchase consideration amounts to an up-front payment of EUR 1.2 million, of which EUR 840 000 will be paid in cash, and the remaining EUR 360 000 in newly issued shares in Catena Media plc. Maximum acquisition cost is EUR 4.8 million, based on revenue performance over a period of two years.
In a reasonable anticipated scenario, with a total earn-out payment of EUR 2.4 million, the sellers would need to generate revenue growth of between 25 and 80 percent during the period. Up to 30 percent of the earn-out may be paid with shares in Catena Media plc.
The shares will be issued at a subscription price of SEK 123,30 per share, corresponding to the volume-weighted average price for Catena Media’s shares on Nasdaq Stockholm during a period of 30 trading days up to and including 10 April 2018. This means that a total of 30,061 shares will be issued, corresponding to approximately 0.06 percent of the shares and votes in the company. The shares will be subject to a lock-up period of twelve months effective from the closing date of the transaction.
On 15 March 2018, Catena Media announced the appointment of Nigel Frith, former Global GM at FXcompared.com, to lead the new business unit, financial services vertical, from London.
