Originalmente veiculado em: MergerMarket
Reamp in talks with two targets to expand digital marketing solutions in Brazil, CEO says
Reamp, a privately held Brazilian provider of digital marketing solutions, is in talks to buy two targets focused on serving the local media industry, said Chief Executive Officer David Reck.
Unlike Reamp, the two targets do not have a strong technology base, but they would help Reamp become a one stop shop firm, Reck said. The São Paulo based company has not set a timeframe to close either deal.
Reamp provides customers with data-driven platforms that enable them to collect and analyze information to develop tailor made strategies for marketing campaigns. Some of its clients include auto maker Fiat Chrysler Auto (NYSE: FCAU), telecom TIM Participações (BVMF: TIMP3), and advertising agencies such as Isobar, the CEO said.
Since its founding in 2010, the company has relied on its own cash generation to funds its growth plans and rebuffed a few offers from seed investors in past years, the executive said. Today, however, Reamp, which expects to reach revenues of BRL 19m (USD 6m) by year end, would be more receptive to proposals regarding a minority stake sale, he noted.
An eventual stake sale to a financial investor could enable Reamp to accelerate its inorganic growth strategy, Reck said. Nevertheless, he cautioned, the company would solely strike up a deal with an investor that could help it expand operations to other Latin American countries, he said.
Reamp’s last M&A foray took place last week, when it announced the acquisition of a controlling stake in Mindigitall, the data intelligence management unit previously owned by Rio Grande do Sul based media group Grupo ABC.
In January, the company bought Ocapi, a local startup specializing in digital marketing services for the ecommerce industry, and incorporated its client base, including Brazil’s largest mass media group Grupo Globo and the online sporting goods retailer Netshoes, the CEO said.
São Paulo based business consulting firm Global Partners was retained to advise on due diligence procedures for both deals, the executive noted.
When asked to cite direct competitors, Reck said that IT giants Google (NASDAQ: GOOG) and Adobe Systems (NASDAQ: ADBE); as well as US based Sizmek (NASDAQ: SZMK), provide some services similar to the ones featured in Reamp’s portfolio.
Reamp is controlled by Reck, who holds an undisclosed stake in the business. Business partners Emmanuel Santana and Michel Bottan own minority stakes in the company, the CEO said.