Team Internet Group PLC (AIM:TIG, OTCQX:TIGXF) has confirmed the completion of its acquisition of Shinez, an online advertising specialist, with a deal enterprise vale of $43.2 million.
It comprises $38.9 million of initial payment, and $4.3 million retained in escrow.
Ambitious financial targets have meanwhile been set for the Shinez business which, if met, could see the deal transaction by up to $12.3 million.
“Together we will shine!" Team Internet chief executive Michael Riedl said in a statement.
He added: "We are excited to announce the swift completion of the Shinez acquisition, marking a significant step in our growth strategy.
“With Shinez joining Team Internet, we now have a robust platform addressing the 'Awareness' stage of the advertising funnel, complementing our existing offerings, TONIC and VGL, which focus on 'Consideration' and 'Conversion', respectively.”
Shinez reported some $111 million of gross revenue in 2023, banking $16.2 million of net revenue and $10.4 million of earnings (adjusted EBITDA).
On proforma basis, the enlarged company’s financials come in with an estimated $948 million of gross revenue, $207 million of net revenue and $107 million of adjusted EBITDA.
Team Internet noted that the acquisition is expected to significantly enhance earnings per share (EPS) which it now estimates in “the high single-digit percentage range” without factoring in any potential synergies.
“This acquisition aligns with our broader vision to provide comprehensive online marketing solutions across the entire customer journey,” Riedl highlighted.
“We are focused on leveraging the strengths of Shinez to drive new growth opportunities and expand our revenue streams.
“The integration of Shinez into our operations will enable us to offer a more holistic service to our clients, facilitating strategic cross-selling between Shinez's and TONIC's publisher bases, while also deepening our vertical integration with major networks like Meta.”
He added: “Our immediate priority is to ensure a smooth integration process, enabling us to deliver even greater value to our partners and stakeholders.
“We are confident that this strategic move will enhance our competitive edge and open new pathways for innovation and collaboration.”