Joint venture acquires 50.1 percent equity interest in British affiliate network
Axel Springer and PubliGroupe together purchased a 50.1 percent stake in Digital Window Ltd. The company is one of the leading affiliate networks in Great Britain, the biggest European market for performance-based online marketing.
Dr. Mathias Döpfner, CEO of Axel Springer AG: "The investment in Digital Window will enable us to continue on a course of dynamic growth in the business of performance-based online marketing. As announced, the clear focus of our investment strategy is to continue expanding our digital business. That applies both to our own brands and also to further complementary acquisitions, as in the case of Digital Window."
With this acquisition, Axel Springer and PubliGroupe are continuing their successful partnership and strengthening their position in this growth segment. Together, the two companies already own the online marketing services provider Zanox, based in Berlin.
Dr. Jens Müffelmann, Head of the Electronic Media division of Axel Springer AG: "Zanox already is the market leader in online performance marketing on the European continent. With Digital Window, we are now also tapping the important British market as part of our continued international expansion. What is more, Axel Springer has bolstered its extensive digital media portfolio through this addition of an economically successful, excellently managed company that is well positioned for the future."
Under an affiliate marketing model, Digital Window enables more than 850 advertisers to market their goods and services through more than 80,000 online publishers. The company earns a commission for every successful transaction completed via its platform. Among its biggest customers are the British retail chain Dixons Store Group, as well as Nike and Vodafone.
Since it was founded in 2000, Digital Window has developed into an award-winning quality and technology leader in the British market for performance-based online marketing. Based in London, the company employs nearly 100 marketing specialists. It has been profitable for more than seven years with annual sales in excess of EUR 40 million in its 2008/2009 financial year. Digital Window’s business is growing at a significantly faster rate than the market. The two founders, Kevin Brown and Andrew Totten, will hold 49.9 percent of the company's stock. Kevin Brown will also continue managing the company as CEO in the future.
“I am delighted to partner with Axel Springer and PubliGroupe, two of the most successful European media companies. Working together will create some fantastic opportunities for Digital Window, which my team and I are very excited about," said Kevin Brown, founder and CEO of Digital Window Ltd.
The transaction is subject to approval by the competent antitrust authorities.
This press release is also available at www.axelspringer.com .