Matomy Media Group share price rises as $17m MobFox deal to double down on mobile revealed
Israel’s Matomy Media Group, of which French ad giant Publicis took a 20 per cent stake in earlier this month, will buy Austrian mobile-advertising specialist MobFox for $17.6m (£10.9m) in a move to boost its mobile offering.
The deal, which CityAM understands is due to close in the next few days, is comprised of $10.1m in cash and $7.5m in newly issued shares.
MobFox will boost Matomy’s revenue from mobile to 20 per cent this year, and enable it to set a goal of 50 per cent of revenue from mobile activity in less than five years.
“We believe mobile should be one of our main growth engines and of course we have been investing organically in order to grow our mobile presence,” Matomy chief executive Ofer Druker told CityAM “Through this acquisition, we enable many more tools that will help us to grow our presence on mobile and to give our publishers and advertisers more robust tools to manage their campaigns or to monetise their traffic.”
MobFox is on track to have a revenue run-rate of between $15m and $17m for 2014, and brings Matomy offices in Vienna, San Francisco, Paris and London – which will become Matomy’s UK branch office.
“The resources and support of Matomy will help MobFox build upon our strategy of delivering innovative mobile programmatic advertising and monetisation technology and will drive further success for our customers,” said MobFox founder and chief executive Julian Zehetmayr.
Matomy’s shares rose 2.2 per cent to 232.50p on the news yesterday.