Email Facebook Twitter

We will be performing Scheduled Maintenance on Thursday 19th April between 6:45pm and 4.00am on Friday the 20th. We apologise for any inconvenience this may cause.

Ariana forecast 47% rise in Kiziltepe gold production

Alliance News

Taptica Buys Stake In Japan-Based Adinnovation For USD5.7 Million

Mon, 17th Jul 2017 12:41

LONDON (Alliance News) - Mobile phone advertising firm Taptica International Ltd announced on Monday it has bought a majority stake in Japan-based advertising company Adinnovation Inc for up to USD5.7 million.

AIM-listed Taptica will pay up to USD5.7 million for a 57% stake in Adinnovation with about USD4.3 million payable immediately when the deal closes, which is expected to take place in August, and the remaining GBP1.4 million is due after 12 months based on Adinnovation meeting targets.

Taptica has a call option to buy the remaining 43% share capital of Adinnovation for a price of eight times net profit for a period of six months commencing three years after the acquisition closes.

Thereafter, Adinnovation will have a put option for three months to sell at a price of seven times net profit.

Following the closing of the acquisition, Adinnovation is expected to contribute more than USD5.0 million to Taptica's revenue for 2017 and USD500,000 to its adjusted earnings before interest, tax, depreciation and amortisation on a consolidated basis.

Taptica said the acquisition is part of its strategy to increase its presence in the Asia-Pacific and the company anticipates Japan will be the "next key growth market" for mobile phone advertising due its developed mobile network.

Adinnovation specialises in mobile application and mobile advertising marketing promotions and has recently started to expand into China, Southeast Asia and other markets.

The acquisition follows Taptica and Adinnovation's partnership agreement signed earlier this year.

"We are delighted to welcome Adinnovation into the Taptica family. The two companies have been working closely together over the past year, generating revenues and profits together," Taptica Chief Executive Hagai Tal said.

"The acquisition is expected to be accretive and earnings enhancing from day one and we also expect to benefit from a number of strategic synergies and mitigate the costs and risks we would have incurred to penetrate a market such as Japan organically."

Shares in Taptica were up 4.1% to 380.00 pence on Monday.

By Maryam Cockar;; @MaryamCockar

Copyright 2017 Alliance News Limited. All Rights Reserved.

Alliance News

Back to Alliance News

Share Price, Share Chat, Stock Market news at
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.