Matomy acquires US digital media agency MediaWhiz for $10m

The acquisition of MediaWhiz will enable it to enter new performance-based advertising markets, such as education and financing.

Matomy Media Group Inc. has acquired US digital media agency MediaWhiz Inc. for $10 million. This is Matomy's third acquisition, following the acquisition of Adperio in July 2011, in order to enter the US market, and Mexico's Ergos Media in November 2010, to enter the Latin American market. Matomy says that the acquisition of MediaWhiz will enable it to enter new performance-based advertising markets, such as education and financing.

The acquisition of MediaWhiz was part of its strategy to gain footholds in foreign markets through acquisitions. Following the acquisition, 50% of Matomy's business in the US, 35% is in Europe, and 15% in Latin America.

MediaWhiz has 100 employees and $75 million in annual revenue. The acquisition will boost Matomy's turnover to $230 million (not including Adperio). The company has 350 employees in Israel and other countries.

Matomy CEO Ofer Druker said, "We are impressed by MediaWhiz’s strong presence with advertisers and agencies and its recognized positive reputation in the market place. I am confident that this acquisition will benefit both of our customer bases with more audience reach, engaging media channels, cutting-edge tracking technologies and, most importantly, effective results in their online advertising campaigns."

Druker founded Matomy in 2006. Its value is estimated at over $300 million, it had $200 million revenue in 2012 (including Adperio's activity), and it is profitable. The acquisition of MediaWhiz will delay Matomy's plans for an IPO. In November 2011, Druker told "Globes", "I think that, during the coming year, the company will be able to hold an IPO. If the markets are in good shape and the economy is strong, we'll hold an IPO in late 2012 or in early 2013."

Now, however, Matomy will probably need time to absorb MediaWhiz.

Through subsidiaries, Matomy provides performance-based advertsing services (which account for half its revenue), display advertising (banners and video), mobile and virtual currencies worldwide. It has 500 customers among top advertisers across 7,000 publishers in 85 countries.

Matomy chairman Ilan Shiloach owns 29% of the company, Viola Private Equity owns 22%, Druker owns 9%, Nir Tarlovski owns 8%, co-founder Adi Orzel, who left the company last year, owns 8%, and employees and other investors own the remaining 24%.

Published by Globes [online], Israel business news - - on January 8, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018