Viola Private Equity will invest USD17m in Adsmarket, a media performance and internet advertising company valued at USD75m, and will hold 21 per cent of the company shares.
Of the full investment amount, USD12m will be used to acquire shares from current shareholders and USD5m will be invested in the company.
At the completion of the investment, the value of Adsmarket will be USD80m and the new ownership structure will be: Ilan Shiloach, the company’s chairman will hold 29 per cent, Viola Private Equity will hold 21 per cent, the Druker-Orzel Group will hold 16 per cent, the Tarlovsky Group will hold 16 per cent, the Moyal Group will hold nine per cent and the Adsmarket employees will hold nine per cent.
Osnat Ronen (pictured) and Harel Beit-On, partners in Viola Private Equity, will join Adsmarket’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, based in Tel Aviv, was established in 2007. Over the last three years the company exhibited rapid growth and in 2010 is expected to finish the year with sales of USD80m, compared to USD60m in 2009, USD36m in 2008 and USD7m 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. It is active in a number of areas: mobile content, games, travel, and software.
Ronen says: "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."
Shiloach adds: "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."
