CentralNic Group PLC (AIM:CNIC) has revealed it is broadening its reach in social media and native advertising with the acquisition of tech firm Aporia for US$11.2mln net in cash.
“The acquisition is part of a larger vertical integration strategy, providing the group's online marketing segment with more direct access to high-quality traffic to monetise,” said the company.
Aporia is already an exclusive supplier to CentralNic, it noted, so while the transaction will increase gross and EBITDA margins, it will have no immediate impact on revenue.
In 2021, the Israeli business generated revenue of US$35mln, gross profit of US$3.5mln and EBITDA of US$2mln, and the acquisition is immediately earnings accretive.
Up to another US$7.8m is payable to Aporia’s vendors dependent on performance up to and including 2024.
In a statement, Ben Crawford, CentralNic’s CEO, said: "Disintermediating the value chain holds enormous potential to create a more efficient ecosystem in CentralNic's Online Marketing business, removing transaction costs and friction losses."
“This acquisition represents a major step forward in our disintermediation strategy, creating more value for CentralNic, as well as for the users of our customer acquisition and traffic monetization services," he added.
In addition, CentralNic said former Future PLC executive Claire MacLellan has joined its board as a non-executive director.
For six years up until recently, MacLellan was Future's chief growth officer where she orchestrated an acquisitions strategy that saw profits grow from six figures to US$250mln in four years.
Crawford commented: "We are delighted to welcome Claire to our board. She has a wealth of experience in growing a public company similar to CentralNic both organically and inorganically. Claire's skillset is an ideal fit with CentralNic's strategic ambitions.”
MacLellan replaces Tom Pridmore, who steps down by rotation after nine years. His departure is a source of great regret, said CentralNic chairman Iain McDonald.