Matomy Media acquires mobile ad platform MobFox

Ilan Shiloah

The Israeli digital ad company will pay $17.6 million for MobFox.

Digital ad company Matomy Media Group (LSE:MTMY) has acquired Austrian mobile programmatic advertising platform MobFox for $17.6 million.

Matomy said that the investment will provide clients and media partners with access to innovative mobile programmatic advertising solutions, including demand- and supply-side-platforms (DSP and SSP) and a single gateway for mobile, video and native ad inventory management via a real-time bidding (RTB) marketplace.

Matomy will pay $10.1 million in cash and $7.5 million in shares, at £2.60 per share. MobFox's shareholders may be entitled to an additional payment, commencing 24 months following the closing of the asset purchase transaction, based on MobFox's 2015-17 financial performance.

MobFox's revenue run-rate will be $15-17 million for 2014. Subsequent to the acquisition and integration of MobFox's platform, the enhanced mobile activity of Matomy is expected to contribute about 20% of the company's global revenue in 2014 (on a pro-forma basis), up from 7% in 2013. Matomy expects that MobFox's technology will enable it to set a goal of 50% of revenue coming from mobile activity in less than five years. As part of the acquisition, MobFox executives and other key personnel will join the Matomy team, which already has nine offices around the world, including its global headquarters in Israel, and regional headquarters in Germany, Spain, Mexico and the US. MobFox's London office will become Matomy's UK branch office.

Matomy CEO Ofer Druker said, "The impressive growth of programmatic and mobile advertising has made it clear that both will form an important part of the future of digital advertising. MobFox has built an excellent mobile programmatic advertising solution, and its business fits perfectly into our vision, complementing our performance-based advertising capabilities. We make it a priority to invest in companies that have developed proven innovative technologies and solutions that will give our advertising clients and media partners unrivalled access to these services. With MobFox, we will continue to expand our capabilities in mobile and programmatic advertising, which are key growth engines for our business."

Earlier this month French advertising company Publicis Groupe acquired a 20% stake in Matomy, surpassing founder Ilan Shiloach as the company's largest shareholder.

Published by Globes [online], Israel business news - - on October 28, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Ilan Shiloah
Ilan Shiloah
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