NetBooster acquires Total Management
3 juillet 2007
netbooster-acquires-total-management.pdf
NETBOOSTER (FR0000079683 – ALNBT), the European interactive agency specialised in Online
Marketing, announces today the acquisition of TOTAL MANAGEMENT, the leading Online Marketing agency on the SCANDINAVIAN market.
Founded in 1998 in Helsinki by Risto POUTIAINEN – a recognised Internet personality in Finland -– Total
Management asserted itself as the leading independent Online Marketing interactive agency in Finland.
Total Management’s service offer is comparable to that of NetBooster and includes:
- Search Engine Marketing
- Search Engine Optimisation
- Online media consulting and media campaign management
CONTINUING IMPLEMENTATION OF NETBOOSTER’S PAN-EUROPEAN STRATEGY
NetBooster Group is already established in London (UK), Frankfurt (Germany), Madrid (Spain), Rome and Milan (Italy). The acquisition of Total Management will enable the Group to extend its presence in northern Europe, in line with its pan-European “one-stop shop” strategy. As a reference Online Marketing player in Finland, Total Management brings to the NetBooster Group an experienced team of 33 expert staff and adds to the Group major client portfolio some prestigious names including NOKIA, ABB, EBOOKERS, HEWLETT PACKARD and NORDEA.
The management and personnel of Total Management share the strong entrepreneurial culture developed by NetBooster as well as its plan to develop NetBooster into a pan-European Online Marketing leader. All employees retain their current positions and will become shareholders of the NetBooster Group.
FINANCIAL TERMS AND CONDITIONS OF THE TRANSACTION
NetBooster acquires Total Management’s share capital in full for a consideration of € 5.7 million net of estimated cash on balance sheet at close, payable at the effective date of the transaction, plus a deferred consideration in the form of an earn-out based on Total Management’s performances over the 2007 and 2008 financial years. Total Management achieved 2006 sales of € 4.9 million and an operating profit of € 1,2 million.
The acquisition will be fully financed in cash. In addition, Total Management’s shareholder-managers have committed to reinvest 50% of the purchase price within the framework of a NetBooster share capital increase, as a testimony to their strong commitment to NetBooster’s ambitious expansion plan. NetBooster will take effective control of Total Management during July 2007.
“We are delighted to join an ambitious and experienced team, whose business plan fully matches our respective clients’ expectations. We are pleased to make a financial investment and take part as managers in a corporate project aiming at developing a leading European player in online marketing”, Risto Poutiainen, Director and Founder of Total Management, commented.
Pascal Chevalier, Chairman and CEO of NetBooster Group, concluded: “The acquisition of Total
Management provides a strong earnings enhancing effect to our shareholders. This is another milestone in the implementation of our pan-European strategy, which will enable us to continue to rapidly establish client and business synergies, while winning new markets in Scandinavia. In the light of the vigour shown by the online marketing sector and our intention to become a major player in a market showing early signs of consolidating, we remain alert for any new acquisition opportunity”.