Alma Media acquires Nettix Oy, the leading marketplace for motor vehicles from Otava Group for EUR 170 million, strengthening its position in the marketplaces business in Finland

Alma Media Corporation        Insider information                                               5 March 2021 at 8.00 a.m.

ALMA MEDIA ACQUIRES NETTIX OY, THE LEADING MARKETPLACE FOR MOTOR VEHICLES FROM OTAVA GROUP FOR EUR 170 MILLION, STRENGTHENING ITS POSITION IN THE MARKETPLACES BUSINESS IN FINLAND

Alma Media has signed an agreement to acquire Nettix Oy’s entire share capital from Otava Group on 5 March 2021. The acquisition strengthens Alma Media’s position in the marketplaces business in Finland, especially in automotive and mobility services. In addition, the acquisition of Nettix Oy opens new business opportunities, for example in renting and leasing operations.

In 2020, the acquired business had revenue of EUR 22.5 million, EBITDA of EUR 11.2 million and operating profit of EUR 10.0 million. The enterprise value of the acquired business is EUR 170 million.

Nettix Oy’s business consists of Finland’s leading motor vehicle marketplaces, such as Nettiauto, Nettikone and Nettimoto, reaching an audience of 2.5 million Finns every week¹. In 2020, the Nettix marketplaces generated approximately 81% of Nettix Oy’s revenue. The marketplace business had a compound annual growth rate (CAGR) of revenue of approximately 7% in 2016–2020. In addition, Nettix Oy consists of Konepörssi, the leading professional media for machine and transport business, and the news service Ampparit.

The acquisition of Nettix Oy is a continuation of Alma Media’s strategy to focus on digital media and services. Nettix will complement Alma Media’s marketplaces business, offering opportunities for cross-selling and upselling and for sharing of best practices between the services. Through this acquisition, Alma Media continues its strategic expansion into new digital products and services that address customer needs and cover the entire value chain, ranging from sales systems to transactions. Digitalisation of mobility services and the automotive ecosystem is expected to accelerate further in coming years, and trading is expected to continue its shift to digital marketplaces and platforms.

After the acquisition, the revenue of Alma Media’s marketplaces business in Finland will be approximately EUR 46 million. In total, including Alma Media’s international operations, the marketplaces business account for approximately 41% of the Group’s revenue.

The acquisition is expected to take place in the turn of March and April 2021.

– The Nettix acquisition represents an important step in our strategy that focuses on digital media and services. It strengthens our position in the automotive and mobility sector, being strategically important for us in Finland. Nettix’s digital and highly scalable business model enables profitable growth and expansion to new business areas. In the future, we will combine journalistic content, marketplaces and digital services with the latest technology, while staying attentive to consumers’ needs at all times. This will be achieved by leveraging the data accumulating from the consumption of content and services, which in turn enables us to develop products efficiently and create marketing solutions with maximum impact, says Kai Telanne, Alma Media’s President and CEO.

Nettix will be reported as part of the Alma Consumer business segment, starting from Q2 2021. Alma Consumer’s competitiveness is based on the superior reach of media and services as a digital network, the unique user data pool and the developing industry verticals in the areas of media, housing, cars and comparison services.

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Information on Nettix Oy

Nettix Oy’s business operations consist of three business areas: digital mobility marketplaces, professional media for machines and a news service. The marketplace brands are Nettiauto, Nettimoto, Nettikaravaani, Nettikone, Nettimarkkina, Nettimökki, Nettivaraosa, Nettivene and Nettivuokraus. They are Finland’s largest marketplaces for motor vehicles and mobility services, enabling consumers and businesses to purchase, sell or rent what they need. Currently, there are approximately 770,000 classified advertisements posted on the marketplaces. In 2020, more than 800,000 cars, boats, machines, motorcycles and caravans were traded in Nettix service. Nettix also includes the OmaNettix mobility service. Of the professional publications, Konepörssi is Finland’s most widely circulated trade publication for the machine and transport sector. In the news services, the core product is Ampparit.

In spite of the coronavirus epidemic and the resulting general economic uncertainty, Nettix Oy’s marketplace business was stable in 2020, generating revenue of EUR 18.2 million. The general decline in automotive advertising was compensated for by classified advertising of resales, sales of added value services and the growth of marketplaces in other sectors, such as free time and hobbies.

Nettix Oy’s adjusted key figures  

*The pro forma figures for 2019 include the business operations merged with Nettix Oy.  

Alma Media estimates that the acquisition will create annual synergies of EUR 1.5 million by 2022, mainly related to advertising sales, support functions, premises, IT systems and IT development. As a result of the acquisition, a total of 39 Nettix Oy’s employees (converted to full-time employees) will transfer to Alma Media. The estimated transaction-related costs are EUR 1.5 million, of which Alma Media has booked EUR 0.5 million as costs in 2020.

Purchase price and financing of the acquisition

The agreed enterprise value of the acquired business is EUR 170 million. Since the selling party is Alma Media’s largest shareholder Otava Group’s subsidiary Otava Markkinapaikat Oy, Alma Media has requested two independent valuations of the target of the acquisition, Nettix Oy. These valuations support the purchase price.

The purchase price will be paid in cash, and Alma Media has agreed on debt financing. Alma Media will finance the transaction fully with debt and has signed with OP Yrityspankki Oyj a committed bridge financing facility of EUR 220 million, which will fall due no later than 18 months after the acquisition has been completed. The financing also covered the EUR 53 million acquisition of the minority shareholding in Alma Mediapartners as announced by Alma Media in December. Alma Media will convert the bridge facility into long-term financing during 2021.

Alma Media’s net debt was EUR -9.1 million on 31 December 2020. As a result of the Nettix acquisition, Alma Media’s net debt is expected to increase by EUR 170 million.

A briefing event for analysts, investors and the media

Alma Media will hold an English-language briefing event for analysts today, on 5 March 2021, starting from 11:00 am. President and CEO Kai Telanne will present the transaction together with CFO Juha Nuutinen.

The event can be viewed live as a webcast at.  https://almamedia.videosync.fi/2021-03-05-press-conference

During the webcast questions can be asked verbally or in writing.

For investors and analysts there is an opportunity to ask questions, please dial-in one of the following numbers prior to the conference start:

Finland Toll: +358 9 8171 0310

Sweden Toll: +46 8566 42651

United Kingdom Toll: +44 3333 0008 04

United States Toll: +1 6319 1314 22

PIN: 41962425#

The presentation material will be available at https://www.almamedia.fi/en/investors/reports-and-presentations/presentations when the news conference starts, and an on-demand replay of the webcast shortly after the end of the conference.

More information: 

Kai Telanne, President and CEO, Alma Media, +358 10 665 3500

Juha Nuutinen, CFO, Alma Media, +358 10 665 3873

For media and interview requests, please contact Elina Kukkonen, SVP, Communications and Brand, +358 10 665 2333 

Alma Media in brief

Alma Media is a dynamic digital service business and media company with a strong capacity for renewal. The company’s best-known brands are Kauppalehti, Talouselämä, Iltalehti, Etuovi.com and Monster. Alma Media builds sustainable growth expanding its offering from media to related digital services fulfilling the needs of users’ everyday life as consumers and as professionals in business. Alma Media operates in 11 countries in Europe. Alma Media employs approximately 1,500 professionals. Alma Media’s revenue from continuing operations was EUR 230.2 million in 2020. Alma Media’s share is listed on NASDAQ Helsinki. Read more at www.almamedia.com 

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