Advertising giant Publicis has announced it has snapped up a 20 per cent stake in performance-based advertising specialists Matomy Media, with an option to acquire an additional 4.9 per cent.
In the three-year period to December 31, 2013, Matomy’s revenues increased to $193.5 million from $106.7 million, a capitalized growth rate of 34.7%, on the back of a surge in mobile and video demand.
Commenting on the investment, Maurice Lévy, chairman and CEO, Publicis Groupe, said: “Tel Aviv is second only to the Silicon Valley in technological innovation and patents. Matomy is fuelled by the innovators and technology experts of Israel and has quickly risen to the top of this important market by creating a world-leading, state-of-the-art platform.
“With Matomy, we will continue to build and promote an open environment for the exchange of ideas and innovation, essential to staying on top in today’s transformational digital age.”
Ilan Shiloah, chairman of Matomy, added: “We are seeing an impressive transformation in the digital advertising industry, and the ‘pure’ performance-based advertising space is an area of high growth potential fuelled by innovation and technology across all channels. Our vision is to build the best performance-based media company in the world, and with Publicis Groupe becoming our largest shareholder, we will be able to create a more mature and sustainable ecosystem, providing marketers with an unprecedented ability to accurately engage, acquire and retain customers.”
Publicis has agreed to pay 227 pence a share for the Tel Aviv based firm, listed on the London Stock Exchange, which has a market capitalisation of $327m.