Ströer SE & Co. KGaA: Acquisition of the Avedo Group: Ströer expands its performance marketing business by taking over dialogue marketing specialist
Jul 06, 2017 4:27 PM
Cologne, 6 July 2017
Ströer today signed the purchase agreement for the acquisition of a 75% stake in the Avedo Group, one of Germany’s leading dialogue marketing specialists. By acquiring Avedo and moving into the area of performance-oriented dialogue marketing, the media company has added an additional channel to its portfolio and, in doing so, has expanded its own sales activities. Ströer’s engagement in performance marketing business is focused on the online, display and e-mail channels, while Avedo predominantly works with the chat and telephone channels in marketing third-party products. By combining the two company’s product ranges, the new and expanded Ströer Group will be able to offer its customers integrated, end-to-end solutions along the entire marketing and sales value chain in future.
Ströer expects to generate an additional sales contribution from this acquisition – before synergies – of more than EUR 60 million per year with an EBIT margin in the lower double-digit range. Earnings per Share of Ströer (pre synergies) will increase by around 4%.
The Avedo Group’s business is currently centred on telesales and dialogue marketing, offering its services primarily on a CPO (cost per order) basis. It records over 30 million leads annually and offers expertise in twelve industries, in particular telecommunications, energy, IT, tourism, multimedia and e-commerce. With its double-digit annual growth rate, Avedo is one of the fastest growing providers in the industry. It employs some 1,850 employees at six different locations in Germany. Further substantial growth is expected in the current financial year. The previous management team headed by founder and CEO Torsten Krause will hold a significant stake in the company and lead Avedo’s operating business moving forward.
“This accretive acquisition is a logical and necessary step in the expansion of our sales activities,” said Christian Schmalzl, Co-CEO of Ströer. “We are increasing Ströer’s relevance to its customers and focusing on performance-based sales models. In addition, we expect to leverage considerable synergies in the systematic development of our sales units across all relevant product groups.”
The deal is subject to approval by the competition authority Bundeskartellamt and other common conditions. The closing of the transaction is expected in the third quarter.
About Ströer
Ströer SE & Co. KGaA is a leading digital multi-channel media company and offers advertising customers individualized and fully integrated premium communications solutions. In the field of digital media, Ströer is setting forward-looking standards for innovation and quality in Europe and is opening up new opportunities for targeted customer contact for its advertisers.
The Ströer Group commercializes and operates several thousand websites in German-speaking countries in particular and operates approximately 300,000 advertising media in the out-of-home segment. It has approximately 4,600 employees at over 70 locations. In fiscal year 2016, Ströer generated revenue of EUR 1.12bn. Ströer SE & Co. KGaA is listed in Deutsche Börse’s MDAX.
For more information on the company, please visit www.stroeer.com.
Press contact Ströer
Marc Sausen
Ströer SE & Co. KGaA
Director Corporate Communications
Ströer-Allee 1 · 50999 Cologne
Phone: +49 2236 / 96 45-246
E-Mail: presse@stroeer.de
Investor Relations contact Ströer
Dr. Bernd Metzner
Ströer SE & Co. KGaA
CFO
Ströer-Allee 1 · 50999 Cologne
Phone: +49 2236 / 96 45-118
E-Mail: bmetzner@stroeer.de
Disclaimer
This press release contains “forward looking statements” regarding Ströer SE & Co. KGaA (“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.
Ströer today signed the purchase agreement for the acquisition of a 75% stake in the Avedo Group, one of Germany’s leading dialogue marketing specialists. By acquiring Avedo and moving into the area of performance-oriented dialogue marketing, the media company has added an additional channel to its portfolio and, in doing so, has expanded its own sales activities. Ströer’s engagement in performance marketing business is focused on the online, display and e-mail channels, while Avedo predominantly works with the chat and telephone channels in marketing third-party products. By combining the two company’s product ranges, the new and expanded Ströer Group will be able to offer its customers integrated, end-to-end solutions along the entire marketing and sales value chain in future.
Ströer expects to generate an additional sales contribution from this acquisition – before synergies – of more than EUR 60 million per year with an EBIT margin in the lower double-digit range. Earnings per Share of Ströer (pre synergies) will increase by around 4%.
The Avedo Group’s business is currently centred on telesales and dialogue marketing, offering its services primarily on a CPO (cost per order) basis. It records over 30 million leads annually and offers expertise in twelve industries, in particular telecommunications, energy, IT, tourism, multimedia and e-commerce. With its double-digit annual growth rate, Avedo is one of the fastest growing providers in the industry. It employs some 1,850 employees at six different locations in Germany. Further substantial growth is expected in the current financial year. The previous management team headed by founder and CEO Torsten Krause will hold a significant stake in the company and lead Avedo’s operating business moving forward.
“This accretive acquisition is a logical and necessary step in the expansion of our sales activities,” said Christian Schmalzl, Co-CEO of Ströer. “We are increasing Ströer’s relevance to its customers and focusing on performance-based sales models. In addition, we expect to leverage considerable synergies in the systematic development of our sales units across all relevant product groups.”
The deal is subject to approval by the competition authority Bundeskartellamt and other common conditions. The closing of the transaction is expected in the third quarter.
About Ströer
Ströer SE & Co. KGaA is a leading digital multi-channel media company and offers advertising customers individualized and fully integrated premium communications solutions. In the field of digital media, Ströer is setting forward-looking standards for innovation and quality in Europe and is opening up new opportunities for targeted customer contact for its advertisers.
The Ströer Group commercializes and operates several thousand websites in German-speaking countries in particular and operates approximately 300,000 advertising media in the out-of-home segment. It has approximately 4,600 employees at over 70 locations. In fiscal year 2016, Ströer generated revenue of EUR 1.12bn. Ströer SE & Co. KGaA is listed in Deutsche Börse’s MDAX.
For more information on the company, please visit www.stroeer.com.
Press contact Ströer
Marc Sausen
Ströer SE & Co. KGaA
Director Corporate Communications
Ströer-Allee 1 · 50999 Cologne
Phone: +49 2236 / 96 45-246
E-Mail: presse@stroeer.de
Investor Relations contact Ströer
Dr. Bernd Metzner
Ströer SE & Co. KGaA
CFO
Ströer-Allee 1 · 50999 Cologne
Phone: +49 2236 / 96 45-118
E-Mail: bmetzner@stroeer.de
Disclaimer
This press release contains “forward looking statements” regarding Ströer SE & Co. KGaA (“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.