Sale of Pricerunner
NewMedia SPARK PLC
04 August 2004
Wednesday 4th August 2004
NewMedia SPARK announces sale of Pricerunner for up to $36m to Valueclick Inc.
NewMedia SPARK plc, investor in early stage technology companies, today
announces the sale of Pricerunner, its online comparison shopping site, to
Valueclick Inc. the single-source provider of media, technology and related
services (Nasdaq: VCLK), for a maximum consideration of $36m, of which $6m is
subject to reaching performance targets. This represents the first major exit
from an early stage investment for NewMedia SPARK.
NewMedia SPARK plc acquired its 40.6% interest in Pricerunner when it acquired
Cell Ventures of Sweden in March 2000. Since that time, it has invested a
further £2.2m in the business alongside 3i Group plc (9.32%), TDC A/S (13.83%)
and Northzone Ventures (16.29%) as second round investors, and actively
participated in developing a successful strategy for the business by working
closely alongside the founders. The company was advised during the sale process
by Eagle One Capital.
Pricerunner is a leading provider of online comparison shopping services in
Europe, enabling its users to search for and compare 170,000 products and 1,200
retailers online before they buy. Pricerunner.com is the most popular comparison
shopping site in Sweden and the third most popular site in the United Kingdom.
The company also operates a site in France. The business was launched by three
entrepreneurs, Kristofer Arwin, Magnus Wiberg and Martin Alexandersson in
December 1999 and was the first site in the UK to compare information from both
online and high street stores. It is also unique in that it is the only on-line
service that lists non-paying retailers, which gives users a better view of the
overall market. Pricerunner also produces research reports on price, product and
consumer behaviour statistics. The Company achieved revenue growth of 80% last
year, has net profit margins in excess of 20% and in its first quarter this year
has grown revenues by 111% above the same period last year.
NewMedia SPARK plc owns 40.6% of Pricerunner and its maximum net proceeds after
the one year earn out period will be $14.4m depending on, amongst other things,
adjustments for the closing balance sheet, any warranty claims and transaction
fees. As a result $8.4m will be received in cash at closing, $3.5m will be held
in escrow pending final resolution of these matters, with a further $2.5m
dependent on the outcome of the earn-out during the first year.
At the interim results for the six months ended 30 September 2003, SPARK's
investment in Pricerunner was valued at £1.1m.
Andrew Carruthers, Managing Director of NewMedia SPARK, commented:
'Pricerunner is a great business that started at the height of the internet
bubble and yet was built on sound fundamentals. It avoided the excesses of its
era, and has an experienced management team who stuck to their vision and
survived the collapse in the tech sector. As a consequence, Pricerunner was
able to launch an excellent service when the e-commerce market in Europe started
to fulfill its growth potential.
Early stage investing is all about choosing the right people, taking a long-term
view on market trends and working with management to pursue a sensible growth
strategy. I believe that ValueClick is the right business to support the next
stage of Pricerunner's development. I also believe that it has acquired a
business that will make a valuable contribution to the group as the market
evolves and matures. I wish them and the management of Pricerunner every
success in the next phase of growth.'
-ENDS-
Enquiries:
For NewMedia SPARK
Andrew Carruthers, Managing Director 020
7851 7777
Julie Foster, William Davidson, Tulchan Communications 020 7353 4200
Notes to Editors:
About NewMedia SPARK
NewMedia SPARK plc is an early-stage investor in the Technology, Media and
Telecoms sectors and is quoted on the alternative investment market of the
London Stock Exchange (AIM: NMS). Formed in 1999 the company has a portfolio of
over 30 companies at various stages of development and has representatives or
offices in London, Berlin and Stockholm. NewMedia SPARK plc takes an active
role in the creation and development of new companies, working with management
teams to commercialise and implement new technologies.
For more information, please visit www.newmediaspark.com
About Pricerunner
Pricerunner.com offers product and price comparisons in the categories personal
care, books, cars, computers, finance, games and consoles, golf, home
appliances, household bills, insurance, music, phones, photography and sound and
vision. Pricerunner.com compares information from both online and high street
stores and lists non-paying as well paying retailers to give a better overview
of the market. By giving the consumer an objective and informative overview,
Pricerunner.com makes it quicker and easier to make a good purchase. Another
business area is Pricerunner Research, which generates and refines statistics
based on data from Pricerunner.com, e.g. price statistics, product statistics
and consumer behaviour statistics.
About Valueclick
ValueClick, Inc. (Nasdaq: VCLK) is the single-source provider of media,
technology and related services that enable advertisers, agencies and publishers
to reach consumers in all major online marketing channels.
For more information, please visit www.valueclick.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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