Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORTY) has announced that it has signed an agreement to acquire full ownership of ZAP Group from Apax Partners for NIS 240 million cash, subject to adjustments. The amount paid could grow to NIS 300 million dependent on operational profit milestones adapted to EBITDA over the two years following the acquisition. The deal is subject to certain conditions including approval by the Israel Competition Authority.
Zap Group is Israel's largest consumer website company, with more than 20 websites that have over 17 million monthly visitors. With 300 employees, the company's leading websites are the Zap price comparison site, Zap Golden Pages business directory and the Zap Rest restaurant and culinary website.
Zap Group CEO Guy Bernstein said, "Zap Group's solutions help small and medium companies and businesses to efficiently and precisely manage their commercial connection with customers through advertising, targeting customers and more and this create major marketing and sales value based on a big data and broad digital media network. The acquisition will add an extra dimension to Formula's activities in providing different digital marketing solutions to small and medium sized companies and businesses. We will strive to create synergy between the activities of Zap Group and the other activities in the Formula Group, in the first stage, in the Israeli market, and subsequently we will examine expanding activities overseas."
Zap Group CEO Rami Hazan said, "We are proud to join the Formula Group and happy about the opportunity to expand our circle of customers under Formula and our advance raft of digital marketing and advertising solutions."
Private equity firm Apax Partners bought Zap Group in 2015 for NIS 150 million.
Published by Globes, Israel business news - en.globes.co.il - on April 7, 2021
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