Adsmarket Ltd. performance-based advertising network has raised $17 million from Viola Private Equity, three years after Adsmarket CEO Ofer Druker, CTO Kfir Moyal, and Ady Orzel founded the company.
The deal was signed in early July and the closing is due later this month.
Adsmarket will use $12 million of the proceeds to buy back shares from current shareholders, leaving $5 million for actual investment in the Tel Aviv-based start-up.
Viola Private Equity will own 21% of Adsmarket, at a company value of $80 million, before money. Chairman Ilan Shiloach, an Israeli advertiser, will own 29%, Drucker-Urzel and investor Nir Tarlovsky will each own 16%, Moyal will own 9%, and company employees will own 9%. Viola partners Osnat Ronen and Harel Beit-On will join Adsmarket's board of directors.
Adsmarket's search engine marketing and social network marketing operations are in a range of fields, including cellular content, games, aviation and tourism, and software. 120 of the company's 140 employees are in Israel.
Adsmarket expects $80 million revenue in 2010, 33% more than in 2009. The company originally operated in Europe, before expanding to North and South America.
Published by Globes [online], Israel business news - www.globes-online.com - on July 12, 2010
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