Matomy plans London IPO at $400-500m valuation

The public offering of the digital ad company is planned for early 2014.

Digital ad technology company Matomy Media Group Inc. plans an IPO in London at a company valuation of $400-500 million, sources inform "Globes." The public offering for the company, in which ad executive Ilan Shiloach has a controlling stake (29%) and other major shareholders include Viola Private Equity (22%), CEO Ofer Druker (9%), and Nir Tarlovsky (8%) is being planned for early 2014.

Matomy's controlling shareholders had planned the IPO for early 2013 but decided to postpone raising the financing. At the time, the company said it was waiting for, "The right momentum from the point of view of the company, which is constantly growing." In fact in recent months, the company was in two minds whether to go public in London or New York. But it has now been decided to go public in London and at a valuation higher than previously mentioned.

Matomy was founded in 2006 by Druker, Adi Orzel and Kfir Moyal. In 2010, McCann Erickson Israel chairman Shiloach and his partner Tarlovsky made a strategic investment in the company as part of their move to Internet advertising. In 2009, Shiloach and Tarlovsky founded TheTime technology incubator to nurture new media start-ups, and Matomy is based in the same building in Tel Aviv's Ramat Hahayil.

Other major Matomy shareholders include Universal McCann Israel CEO Alon Stern, publicist Nissim Douek and ad producer Nirit Yaron, the partner of advertising executive Ori Pridan, himself an investor in TheTime.

Working through four divisions Matomy develops advertising based on performance results in the mobile phone sector and provides solutions and services for in various ad sectors. The company is believed to be exceptionally profitable. Revenue for 2013 is expected to reach $300 million, 50% up from 2012.

The company works through four divisions, which it branded in 2011 under the name Matomy: awareness based on results, digital ad network, virtual payment solutions in games, and mobile ad results. The company's main source of revenue is generated from the activities of Matomy Media - its ad network. This is a network with 500 customers advertising on 7,000 sites and platforms in 85 countries. Matomy Market engaged in advertising based on performance results is responsible for one third of revenue, while the balance of the revenue comes from Matomy Mobile and Matomy Money.

Tens of millions of dollars in acquisitions

In the past three years, Matomy has also made four acquisitions at a cost of tens of millions of dollars. The most recent acquisition just two months ago was Us company Mobaff for an estimated $6 million. Mobaff specializes in developing technologies and platforms for marketing and advertising on mobile networks. Mobaff is expected to strengthen the activities of Mobit, a brand launched in July.

Prior to that Matomy acquired US digital media agency MedaWhiz in January for $10 million, US digital ad company AdPerion in July 2011 for $30 million, and Mexico's Ergos Media to give it a foothold in the Latin American digital ad market.

Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2013

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

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