Ströer intends to take over OMS, the national digital marketing agency of Germany's regional daily newspaper publishers
Sep 09, 2015 9:09 PM
DGAP-News: Ströer SE / Key word(s): Acquisition
OMS will be integrated in the Ströer Digital Group by means of a capital increase against a contribution in kind. The Ströer Digital Group is the sister company of the Ströer Content Group, and is responsible for Ströer SE's German national online marketing activities in the digital segment. In return, the OMS' shareholders will receive a ten percent stake in the Ströer Digital Group. OMS is currently owned by 33 German daily newspaper publishers including Rheinische Post Mediengruppe, Ippen-Gruppe, Madsack Mediengruppe, SWMH, Verlagsgruppe Pressedruck and NWZ Mediengruppe.
Ströer expects OMS to contribute annual sales of approximately EUR 30 million. Following the acquisition of OMS, t-online.de and InteractiveMedia, digital sales will account for almost 40 percent of the group's revenue, which is expected to total more than EUR 1 billion in 2016. The operational EBITDA-margin should remain unchanged at 23 to 24 percent.
That is a significant step towards the Cologne-based media company's medium term goal of increasing the proportion of turnover generated by its digital sales to 50 percent. Both Ströer and OMS expect the merger to result in strategic advantages in the increasingly consolidated online advertising market, along with significant synergies at various levels and improved access to customers and agencies. Overall, the company expects double-digit growth to continue in its digital business.
The acquisition will also strengthen Ströer's position as a major digital marketing agency, and allow it to set new standards in the German market with regard to inventory quality, depth of data, reach and technical infrastructure. The company will also reinforce its marketing position in an otherwise fragmented publisher and marketing agency environment, and it expects to profit sustainably from the coming market consolidation.
"In our view the decision taken by the publishers of the regional newspapers - the traditional backbone of the German media environment - to take on Ströer as a strategic media partner is both a seal of approval and recognition of our successful work in recent years. We consider the transaction to be of major strategic significance. It is another very important step towards ensuring the future competitiveness of our German online marketing agency in a global market," noted Udo Müller, CEO of Ströer SE.
Stephan Marzen, chairman of the OMS advisory board: "Our future cooperation with Ströer, which is a very strong partner, is an indispensable element of our future marketing strategy and is essential to OMS' future success and the digital marketing activities of the German regional daily newspapers in a highly dynamic market. The merger sends a strong signal regarding the urgently required consolidation of the German online advertising market."
The OMS product, a consolidated national service on the websites of the German regional daily newspapers, will continue to be available and give advertising customers access to a comprehensive national digital service with strong regional brands and unique regional options. Innovative advertising formats, and proven higher levels of effectiveness as a result of the strong loyalty of users to regional media markets, will continue to provide a strong basis for successful future campaigns. OMS' strong digital portfolio guarantees with its journalistic content a high level of credibility, high user loyalty, and, above all, an excellent conversion rate.
"This step again clearly reinforces our focus on premium quality in the online marketing segment and rounds out the upper end of the Ströer Digital Group's marketing portfolio. The online advertising market is currently undergoing significant change: Data quality is becoming increasingly important for optimum marketing, and we expect a significant split between data and inventory in future. The business models of global providers mean that they have access a huge range and depth of data. Further consolidation of the fragmented German publisher and marketing agency environment is, therefore, urgently required in order to remain competitive in the medium and long term. That is why we are very pleased about the decision of the OMS shareholders," explained Christian Schmalzl, COO of Ströer SE.
Matthias Wahl, OMS management spokesman: "OMS is a successful model that allows regional daily newspapers with high-quality editorial content to be marketed at the national level. This strategic partnership will sustainably secure the effectiveness and future of OMS."
The transaction is subject to approval from the federal cartel office and other generally applicable conditions.
In the full year 2014, Ströer SE generated consolidated revenue of EUR 721m.
The Ströer SE is listed on the SDAX of the German Stock Exchange.
For more information on the Company, please visit www.stroeer.com.
This press release contains "forward looking statements" regarding Ströer SE ("Ströer") or the Ströer Group, including opinions, estimates and projections regarding Ströer's or the Ströer Group's financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Ströer or the Ströer Group to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this press release and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by Ströer with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this press release is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning Ströer or the Ströer Group. Ströer undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise.
2015-09-09 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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