aQuantive Acquires European Reseller of Atlas DMT Technology
aQuantive Strengthens International Presence with the Purchase of U.K.-Based TechnologyBrokers and MediaBrokersSEATTLE & LONDON--(BUSINESS WIRE)--July 26, 2004-- aQuantive, Inc. (Nasdaq:AQNT), a digital marketing services and technology company, today announced the acquisition of U.K-based TechnologyBrokers, the European reseller of Atlas DMT technology, and MediaBrokers, a performance-based media company.
"Today's announcement highlights the strength of our Atlas DMT technology in the European market," said Brian McAndrews, president and CEO of aQuantive, Inc. "Through our relationship with TechnologyBrokers and MediaBrokers, the Atlas Suite of products has grown to be a premier advertising technology solution with many of the top advertising agencies across Europe. As a company, aQuantive has been looking for opportunities to broaden our International appeal, so it makes perfect sense for us to bring in-house the company and resources that helped make our technology business a success in Europe."
TechnologyBrokers has been the exclusive sales and customer service partner for Atlas DMT in Europe since 2002. Existing clients include major European advertising agencies like Agency Republic, Starcom Mediavest, Carat and mOne. As part of the deal, TechnologyBrokers will change its brand identity to Atlas Europe.
TechnologyBrokers' sister company, MediaBrokers, was founded in 2001, and like aQuantive's DRIVEpm business, helps publishers monetize their unsold media space while providing agencies and direct advertisers with a performance-based media model. MediaBrokers will retain its brand identity.
"Our partnership with Atlas DMT has been core to the success of our business," said James Aitken, managing director of TechnologyBrokers and MediaBrokers. "We believe it is a natural progression to bring our capabilities inside and help further strengthen aQuantive's and Atlas DMT's position in Europe."
"Atlas DMT's success in Europe has stemmed from having an experienced local partner who understands the market and who provides superior service and support for our clients," said Ona Karasa, president of Atlas DMT. "TechnologyBrokers has a proven track record and we are certainly excited about having them under the Atlas brand."
aQuantive announced that it paid 1.8 million pounds (approximately $3.2 million) to purchase TechnologyBrokers and MediaBrokers. There is also an earnout that provides for additional payments over two years, depending on the profitability of the businesses.
aQuantive noted that TechnologyBrokers and MediaBrokers are privately-held companies and are profitable. The combined entities had revenues of approximately $5 million in 2003. aQuantive noted that it expected these companies to contribute approximately $3 million in revenue and $300,000-$400,000 in EBITDA (1) for the remainder of 2004, after certain one-time costs associated with takeover and integration. The acquisition is expected to be breakeven to slightly accretive in GAAP earnings per share this year after providing for the amortization of intangible assets.
(1) EBITDA, or earnings before interest, income taxes, depreciation and amortization, is a non-GAAP financial measure. The company believes that EBITDA is a useful measure of its ability to generate cash flow from operating its businesses, and can be used to supplement GAAP financial measures in evaluating company performance.
About TechnologyBrokers
A technology consultancy for advertisers and agencies, TechnologyBrokers helps boost the performance of an online campaign with the best tools for your business, helping you get the most from your digital marketing spend. We believe the best platform for serving and tracking Internet ads is provided by Atlas DMT. TechnologyBrokers is the exclusive licensee to resell Atlas DMT's online advertising campaign management technology.
About MediaBrokers
MediaBrokers is a pioneer in the performance media space and was founded in 2001 to assist publishers in monetizing their unsold media space while providing agencies and advertisers with a results-based media model. The model has been highly successful and digital agencies worldwide have experienced the results MediaBrokers delivers.
About Atlas DMT
Atlas DMT (www.atlasdmt.com) is a marketing technology provider and creator of the Atlas(R) Digital Marketing Suite, the industry's first fully integrated online campaign management platform built by and for marketers. The Atlas Suite helps advertising agencies and advertisers deliver efficient, profitable digital marketing programs. The Suite manages online media planning, buying, creative management, analysis and optimization, and offers an integrated paid search management toolset. Atlas Suite clients include Carat Interactive, OMDi, Euro RSCG Worldwide, Tribal DDB, Foote, Cone & Belding, and ID Media. Atlas DMT serves its clients from offices in Seattle, San Francisco, New York, and London, delivering the industry's most complete service and support. Atlas DMT is an operating unit of aQuantive, Inc. (Nasdaq:AQNT). Atlas DMT is a member of the NAI and adheres to the NAI privacy principles that have been applauded by the FTC. These principles are designed to help ensure Internet user privacy. For more information about online data collection associated with ad serving, including online preference marketing and an opportunity to opt-out of the Atlas DMT cookie, go to: www.networkadvertising.org.
About aQuantive, Inc.
aQuantive, Inc. (Nasdaq:AQNT), a digital marketing services and technology company, was founded in 1997 to help marketers acquire, retain and grow customers across all digital media. Through its operating units, aQuantive is positioned to bring value to any interaction in the digital marketplace. aQuantive (www.aquantive.com) is headquartered in Seattle.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "predicts," and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements also include any other passages that relate to expected future events or trends that can only be evaluated by events or trends that will occur in the future. The forward-looking statements in this release include, without limitation, statements regarding expected revenue and EBITDA contributions by TechnologyBrokers and MediaBrokers during the remainder of 2004. The forward-looking statements are based on the opinions and estimates of management at the time the statements were made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Risks that could cause actual results to differ materially from those anticipated in the forward-looking statements include, without limitation, the risk that the costs of integration following the transaction may be greater than expected and the risks of losing clients or failing to acquire new clients. Other information about factors that could cause actual results to differ materially from those predicted in aQuantive's forward-looking statements is set out in its annual report on Form 10-K for the fiscal year ended December 31, 2003, filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as to the date of this release. Except as required by law, aQuantive, Inc. undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
Contacts
aQuantive Public Relations
Angela Gamba, 206-816-8245
angela.gamba@aquantive.com
or
aQuantive Investor Relations
Michael Vernon, 206-816-8599
michael.vernon@aquantive.com
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