Mobile Embrace Acquires UK-Based Company Marketing Punch For $4.64 Million
Mobile marketing and payments m-commerce company Mobile Embrace has announced that it has significantly strengthened its international footprint and its performance marketing offering with the acquisition of a leading United Kingdom online performance marketing provider, Marketing Punch.
Founded in 2004, Marketing Punch is a profitable business that has operations in the United Kingdom, France and Australia and is an industry pioneer in providing qualified online performance marketing support to a large range of clients.
Marketing Punch’s recurring revenue base and client retention rates are particularly strong with more than 60 per cent of clients placing an order with the business every month for the past six years. The business has a proprietary opted-in database of over five million consumers and delivers over 100,000 qualified leads to clients each month. Marketing Punch is acquiring database members at a rate of 220,000 new consumers per month.
Marketing Punch’s team, led by the company’s founder and managing director, Charles Haynes, will continue with the business while Haynes has agreed to enter into an employment contract with MBE.
The acquisition of Marketing Punch is in line with the company’s strategy to acquire quality growth businesses that will accelerate the company’s market expansion and performance marketing capabilities.
Marketing Punch gives MBE the necessary scale and international reach to deliver a more integrated offering to clients and partners both domestically and internationally. With consumers increasingly transacting across multiple online and mobile platforms and devices, MBE will be able to provide a much broader suite of performance marketing and consumer analytics products.
Favourable Acquisition Terms and Strong Financial Performance
MBE has acquired Marketing Punch on favourable terms with an upfront cash consideration of £2.14 million (AUD$4.64 million) as well as the issue of 4 million MBE shares at 26 cents escrowed for a period of 12 months. In addition to the upfront consideration, and subject to achieving 100% of financial targets over the next three years, there will be an additional cash consideration of £1.5 million for each year of successful achievement (£4.5 million (AUD$9.77 million).
Marketing Punch is forecast for the UK FY2016 to generate annual EBITDA of £1.2 million (AUD$2.6 million) from revenue of £3.7 million (AUD$8.03 million) which means the acquisition of the business will be immediately earnings per share accretive to MBE.
Funding and New Debt Facility Secured
To partly fund the acquisition of Marketing Punch and fast-track the organic growth of the company’s other international operations, MBE is pleased to confirm that it has secured a £4 million (AUD$8.68 million) debt facility with the Commonwealth Bank of Australia on favourable terms. £2 million (AUD$4.34 million) will be immediately drawn down under the facility to fund the acquisition of Marketing Punch and further funds will be used to fund m-payments international growth.
MBE is particularly encouraged from the support it has received from the Commonwealth Bank and the confidence the bank has displayed in the company’s business model and growth prospects. To secure this facility with such a credible financial institution reflects the maturing of the company and is a strong endorsement of MBE’s clearly defined strategy and future prospects.
Management Commentary
Commenting on the acquisition, Mobile Embrace’s chief executive officer, Chris Thorpe, said: “This is a very strategically important acquisition for the company as it gives our performance marketing operations considerable scale and significantly expands our international operations. The growth opportunities that result from this transaction are highly compelling, and it is an important step in establishing MBE as an emerging global leader in digital performance marketing.
“Like previous businesses MBE has acquired, we have undertaken a thorough due diligence to ensure that Marketing Punch is immediately scalable, is culturally aligned with our existing operations, and can be easily integrated into MBE. This process enables us to manage any acquisition and integration risks. We have a successful track record of acquiring, integrating and growing businesses under the MBE umbrella, and we expect Marketing Punch will be no different.
“By being part of a more multi-faceted performance marketing offering, there are immediate organic revenue growth opportunities that will be realised by leveraging Marketing Punch’s product offering across the MBE group. We have every confidence in this business and its growth potential as part of MBE.”
Thorpe added: “Securing the new debt facility with the Commonwealth Bank of Australia (CBA) is an important milestone for MBE. CBA has taken considerable time to understand our operations and growth strategy, and they have shown the confidence in our business to provide us with the necessary debt funding to help drive our growth. It is a strong endorsement for MBE and marks a maturing of our business.
“FY2016 has started well for MBE and we are on-track to deliver record first quarter performance. Our operating businesses are performing well and our stringent focus on ROE is delivering to the bottom line. We look forward to updating shareholders on first quarter performance in the coming weeks.”
Charles Haynes, CEO at Marketing Punch, added: “Joining Mobile Embrace is a very exciting opportunity for myself and the whole team at Marketing Punch. We are delighted to be working with MBE and its businesses as we look to substantially strengthen our position in the market over the next few months. The move will not only allow us to explore new markets but through significant synergies, due to Mobile Embrace’s recent acquisitions, we expect further rapid growth.”
Latest News
The Mars Agency Announces Latest Findings Of Retail Media Report Card
The Mars Agency has developed a scorecard that assesses the capabilities of leading platforms across key criteria required to optimally plan, execute, and measure effective retail media programs. The scorecard aims To help brands efficiently evaluate their spending options across retail media networks in Australia (and New Zealand). With spending on retail media advertising in […]
‘It’s The Lesser Of Two Evils’ – NRL Eyes US Betting Market As Aussie Regulators Circle
US betting firms will be delighted by the circa 50,000 Americans who could soon watch the NRL on their favourite app.
A-League In Deep Discussions With New Partner To Keep Games On TV After Production Company Enters Administration
The A-League's insatiable appetite for scoring own goals continues.
TV Ratings (27/03/2024): Jungle Members At War Over Concealed Lipstick
A heated argument between two jungle members did the numbers for Ten last night, with I’m A Celeb obtaining a total national reach of 1,282,000. Fans were delighted as Candice Warner and influencer Skye Wheatley got into it over a stick of lipstick, leading Warner to dub the Instagram star “selfish.” Wheatley, best known for […]
Is The Australian Music Industry In Trouble? Inquiry Launched Following Splendour Cancellation
Earlier this week, an inquiry was launched into the challenges and opportunities currently facing the Australian live music industry in the wake of multiple festival cancellations. On 25 March 2024, the Minister for the Arts, the Hon. Tony Burke MP, asked the Committee on Communications and the Arts to inquire into and report on the […]
Liana Dubois, Leandro Perez, Aimee Buchanan & More Gather For Inaugural Compadres Leadership Event
Didn't get the invite? Perhaps you're not as important as you thought.
Cathay Captures The Unforgettable Thrill Of Cathay/HSBC Hong Kong Rugby Sevens, Via Publicis
Nobody does rugby like Hong Kong, apparently. Certainly nobody does it as badly as Australia.
Cocogun Nabs Christine Watts, Kirsty Reynolds & Shev Tan Bolstering Management & Creative Teams
Cocogun bolsters its team with new hires. Committed to purchasing a bigger sofa, too.
The Media Store’s Jacquie Alley & Sam Cousins Take The Plunge With Pro-Bono Work For Cure Cancer
B&T chats with The Media Store bosses about their great pro-bono work and sponsored swim.
Hawke’s Brewing Co. Taps Rocket Comms For PR Agency Following Competitive Pitch
We're expecting Rocket Comms productivity to crash in spectacular fashion following this win.
Spotlight On Sponsors: Patties Serves Up A Taste Of Home For Olympians & South Sydney Rabbitohs Recommit To Gambling Reform
While the Rabbitohs commits to gambling reform, B&T reckons the team should commit to a decent auto sponsor.
Google: “Inevitable” That Bad Actors Will Abuse Ads Platform As Advertiser Account Suspensions Double
Google maintains it's simply impossible for it to entirely stop bad people placing & paying for ads using its service.
Quantcast Expands APAC Sales Team With Appointment Of News Corp Account Manager
No pressure at all when you are appointed as a client success manager.
Publicis Sapient Tests Microsoft-Powered Gen AI Search Tool With Homes & Villas By Marriott Bonvoy
Given Gen AI's record for mangling stuff, B&T cannot see the problem with letting it decide your next holiday digs.
Volkswagen & DDB Group’s “Roo Badge” To Reduce Kangaroo Related Road Collisions
Watch out for RooBadge as Cannes Lions' most debated campaign this year.
Twilio Launches Unified Profiles & Agent Copilot Features To Boost Productivity & Engagement
Agent Copilot sounds like James Bond's less interesting cousin.
Reebok & Honda Among New Clients For onetwo agency
OneTwo finally lives up to its name with this double billing.
Ogilvy Report: Throw Out The Social Strategy Rule Book, The Rules Of The Past No Longer Apply
B&T was puzzled that all 'influencers' aren't, effectively, 'virtual', but here we are.
WhiteGREY & AKQA Merge In Australia, Lee Simpson Departs
Fortunately, the combined agencies aren't opting for a trite portmanteau for the new name.
Splendour In The Grass 2024 Music Festival Cancelled!
Music fans all over the country reportedly relieved they can pack away their rain coats and gumboots for another year.
TV Ratings (26/03/2024): “Fairy Bread, F***ing Disgusting”: Gordon Ramsay Slams Aussie Food In Food Stars Launch
Ramsay not one for mincing his words, even when it comes to minced meat pies.
Paramount+ International Boss Doubles Down On Aussie Content, Says Ad-Tier will Grow Audiences And Revenue
Good news as Paramount will not be binning I’m A Celebrity for re-runs of Frasier.
Brent Smart: Telstra Pushing For 50-50 Brand-Performance Split But Warns Numbers ‘Won’t Look Great’ Initially
The old brand vs performance debate continues. But here, Brent is firmly sitting on the fence.
Crowded House, Tones And I & Dom Dolla Win Big At The Shure Rolling Stone Music Awards
B&T staffer reports back with humdinger of a hangover & feeling seriously uncool after mixing with music types.
Opinion: Dyslexia “A Hidden Gem” For Brands & Agencies
Dyslexics offer underappreciated benefits in the corporate field, according to this op-ed.
David Jones Taps Criteo To Power Online Retail Media Arm
Want to see ads for things you probably can't afford? David Jones has got you covered with new retail media play.
oOh!media Sets Up Team To Target Business Audiences Across Airports & Offices
oOh! wants brands to harass you every minute of your next business trip.
QMS Launches Australian First DOOH & TV Partnership With Samba TV
Samba TV, of course, is not a channel dedicated to dancing. Much to our dismany.
Slew Of New Hires At Amplify
Four new faces join the Amplify offices. Team say desk scarcity becoming "acute".
Adobe Announces Content Authenticity Initiative Expansions To Counter Deep Fakes
Try as they might to enlighten them, we suspect Trump supporters will continue to watch and believe Fox News.
The PR Group Appoints TechCrunch Senior Reporter Catherine Shu As Director Of Content & Media
Catherine Shu makes the bold leap from journalism to PR. Says inevitable pay bump was "unrelated".
HERO Nabs Ebony Santin From AMPR
Rumours Santin cleared out the stationery cupboard before departing are as yet unconfirmed.
Karena Noble Checks Out Of EVT Hotels & Resorts To Launch Comms Consultancy
Noble still managed to squeezed in a continental breakfast before departing.
Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organisation
Canva & Adobe face off continues. We're not picking sides but keenly aware that Canva's office is next door to ours.
“Lean On Our Team To Help You Find An Audience”: Why Understanding Audience Engagement Is Essential In Journalism
Engaging the audience is critical to journos, apparently. We'd thought self-loathing & alcoholism were key.
Adobe Summit: Major Gen AI Developments, Data Concessions & Partnerships
What happens in Vegas stays there. Unless it's the Adobe Summit and then you get to read about in B&T.