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TradeDoubler Acquires The Search Works

2007-07-27 Desk

TradeDoubler has acquired all shares in The IMW Group, which includes The Search Works and those companies trading as The Technology Works

TradeDoubler AB announced its acquisition on July 25th of all the issued shares in Interactive Marketing Works Ltd and its subsidiaries (‘The IMW Group’). The purchase price amounts to £56 million.

The IMW Group consists of two trading entities, ‘The Search Works’, a well established search engine marketing agency and ‘The Technology Works’, a technology provider for search engine marketing, whose products include ‘BidBuddy®’ - a search management technology.

The IMW Group is a profitable and well managed company which has built up a significant client base, including such brand names as Asda, Comet, EasyJet, First Choice, Interflora and The Carphone Warehouse. The Group has a strong reputation within the industry for professionalism and driving return on investment for its clients. The Group was founded in 1999 and currently employs 108 staff. Turnover for the rolling twelve months preceding June 2007 amounted to £69 million and gross profit for the same period was £7.8 million.

The acquisition complements and expands TradeDoubler’s existing performance-based product portfolio which includes affiliate marketing, online advertising campaigns, pay-per-call and an online tracking and ad-serving technology. The newly combined offering has great synergies for both TradeDoubler’s and The IMW Group’s client bases. Search engine marketing and affiliate marketing are the largest direct response online marketing channels, with significant growth forecasted in both areas.

The Search Works is active in the UK, while The Technology Works has additional presence in Europe and in Asia. TradeDoubler has an extensive presence throughout Europe which spans 18 countries.

“Product expansion and further internationalisation are key components in TradeDoubler’s growth strategy. The acquisition addresses both these areas by rolling out The Search Works and The Technology Works throughout Europe and by utilising The Technology Works’ Asian foothold to assess the roll out of TradeDoubler’s product offerings into Asian markets.” says William Cooper, CEO, TradeDoubler.

Nick Hynes, CEO, The IMW Group adds, “There is a natural affinity between TradeDoubler’s products and services and the search management technology that we offer. We also believe there is a strong cultural fit between our two organisations. Together we will be able to offer unprecedented online marketing services and tools to a range of clients across Europe and beyond.”

TradeDoubler also released its second quarter financial results today and reported strengthened gross profit margins and solid revenue and gross profit performance. Revenues for the period from April to June 2007 increased by 27.9%, compared to the same period in 2006, to reach SEK 512.6 million (approx €56m) and gross profit was up 25.4% to SEK 143 million (approx €15.5)

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