TradeDoubler and NetBooster, two leaders in online marketing, today announced the transfer of TradeDoubler's assets in search to NetBooster and a strategic partnership in online marketing.
TradeDoubler's search business with 55 employees manages search engine marketing (sponsored links) and search engine optimization on behalf of clients in over 20 countries, including GAP Europe, NET-A-PORTER, Interflora, and Tempur. The agreement involves the transfer of all the search employees in six European countries from TradeDoubler to NetBooster and is expected to be completed before year-end 2011.
Under the agreement TradeDoubler becomes NetBooster's preferred partner for services in performance marketing, such as affiliate network, campaigns and technology solutions, and NetBooster becomes TradeDoubler's preferred search marketing partner. By enhancing both companies' offerings, the strategic partnership will provide new and existing customers with a broader geographical footprint in and beyond Europe and greater depth of expertise in digital marketing and e-commerce.
"In line with our overall strategy, the partnership will allow us to sharpen the focus on our core business, performance based marketing. That will enhance our leading position and help us deliver profitable and scalable growth", says TradeDoubler's CEO Urban Gillström. "Our search clients as well as our employees will benefit from the transfer to NetBooster where search is core and already has a leading position."
"NetBooster's acquiring of the assets of TradeDoubler's Search Business, and the formation of the partnership creates a win-win for TradeDoubler's search customers as they maintain existing account management relationships while benefitting from the increased power that a larger search marketing company offers," says Raphaël Zier, CEO of NetBooster. "NetBooster will now be able to provide our customers with even greater expertise in performance marketing through TradeDoubler in Europe."
As a result of this transaction TradeDoubler group will decrease its yearly gross profit by approximately SEK 30M, but at the same time improve the group's gross margin. The impact on earnings and cash flow is minor going forward. The net impact on shareholders' equity, including the profit & loss effects from discontinued operations, is estimated to be approximately SEK -40 M. Starting from 1 November the Search business will be presented as discontinued operations in TradeDoubler's financial statements.
TradeDoubler was advised by GP Bullhound in this transaction.
For more information please contact:
President and CEO, TradeDoubler
Tel. +46 846 501 206
Cell. +46 70 785 76 00
Tel. +46 840 508 91
Cell. +46 70-264 70 35
TradeDoubler helps companies improve their online results, both by increasing sales and by increasing brand awareness. The core business is performance-based online marketing. With a network of over 138,000 web publishers, TradeDoubler helps more than 1,900 advertisers worldwide to reach their business goals. The company has a unique reach being able to address around 75 per cent of Europe's e-commerce consumers. Among the advertisers are Apple, American Express, Dell, Disney, Expedia, lastminute.com and Nokia. The share is listed on Nasdaq OMX. More on www.TradeDoubler.com
Founded in 1998, NetBooster is an independent group of specialist digital marketing agencies, working together to deliver innovative services to 24 countries across the globe. NetBooster is a pioneer of the digital marketing industry, developing and evolving its range of online services including; Search Engine Optimisation, Pay-Per-Click Advertising, Display Advertising, Affiliate Marketing, Website Development, Analytics Consultancy, Social Media Marketing and specialist Facebook Marketing Services.
NetBooster, with its head office located in Paris, also has offices in Spain, Italy, Germany, Finland, China, the Philippines and Brazil. NetBooster also holds a majority share in Guava Group A/S, extending its reach to Denmark, Sweden and the United Kingdom. NetBooster is a recognised leader in the international arena and sales exceeding €31 million for the 2009 fiscal year, the Group is highly committed to growth and innovation. NetBooster's success is re-affirmed by the financial results for 2010, showing that sales have increased by 45% to €45.1 million and gross profit has increased by 52% to €22.8 million.
Managed by Raphael Zier, it carries the OSEO-ANVAR seal of approval as an "Innovative Business" and thus its shares are eligible for FCPIs (French Mutual funds). Shares in NETBOOSTER trade on the Alternext Paris market of NYSE Euronext.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: TradeDoubler AB via Thomson Reuters ONE