DREAMNEX : DreamNex, the French Leader in Adult E-Commerce, announces the acquisition of two major sector operators


Acquisition of Think Multimedia and Open Axe:

Following its recent successful IPO on Eurolist, DreamNex, the French leader in online adult products and entertainment, has announced its agreement to acquire 100% of Think Multimedia and Open Axe.

Think Multimedia is France's biggest adult traffic aggregator, mainly through its strong search engine presence and its powerful international partnerships. It also publishes a flourishing photo and video content site, TopMiss.com.
Open Axe, a web agency specialising in adult products and entertainment, manages one of the biggest online adult affiliate programs, F5Biz.com, which has over 4,000 registered partners.

The total acquisition price for both companies is ¤8.7 million, comprising two thirds in cash (¤5.7 million) and one third in the issuance of new shares (¤2.9 million)(1). The two companies will be acquired and merged into DreamNex in the second half of the year after approval at an extraordinary shareholders' meeting to be held during October.

These acquisitions will strengthen DreamNex's position in the sector, secure its sources of traffic and provide strong, complementary online expertise. The founders of both companies, who have worked in partnership with DreamNex for several years, will join the group's management team. Their involvement will be strengthened through a three-year earnout arrangement and a share lock-up period of almost two years.

Two highly accretive acquisitions:

The two companies combined generated total revenue of ¤11.7 million in 2006, a 30% increase on 2005. As DreamNex accounted for 79% of this figure, the acquisitions will not generate much additional revenue. However, they will make a much higher contribution to profitability. The two companies combined generated total operating income of ¤3 million(2) in 2006. The deal is highly accretive as the acquisition price represents a multiple of 2.9 times this figure.

(1) Based on the average share price in the fifteen trading days prior to signature of the acquisition agreements.

(2) After restatement of the directors' salaries to the lower level to be paid by DreamNex as of June 2007. Before restatement, total 2006 toal operating income was ¤2.7 million.

Confirmation of announced build-up strategy:

Patrice Macar, Chairman, CEO and founder of DreamNex, commented: "This deal confirms our build-up strategy in the adult content market announced at the time of our IPO and illustrates the excellent opportunities available in this sector: small, highly profitable and easy-to-integrate companies at low prices. After these two acquisitions, DreamNex will still have two thirds of its IPO funds left. We therefore have the resources to continue our momentum, particularly by moving into the international markets. Our goal is for SexyAvenue.com to quickly become the number one site in Europe."

Dreamnex: French leader in Adult E-Commerce
In February 2000, the current Chairman and CEO of DreamNex launched SexyAvenue.com, the first website with a sleek, up-market positioning dedicated to the sale of adult products and distribution of adult content.
In less than six years, DreamNex has become the French leader in its sector. With 18 million visits and 90 million pages viewed per month (source: Médiamétrie - Xiti - December 2006), SexyAvenue.com has established itself as the most popular adult site. In 2006, DreamNex generated ¤34 million in revenue and ¤5 million in operating profit.

Corporate website: www.dreamnex.com
E-commerce website: www.sexyavenue.com

Patrice Macar
Chairman & Chief Executive
Tel: +33 (0)4 42 53 83 50

Corinne Haury Investor Relations
Tel.: +33 (0)1 53 67 07 65 / chaury@actus.fr
Coralie Vogt - Press Relations
Tel.: +33 (0)1 53 67 35 79 / cvogt@actus.fr

© Copyright Actusnews Wire
Recevez gratuitement par email les prochains communiqués de la société en vous inscrivant sur www.actusnews.com
Receive by email the next press releases of the company by registering on www.actusnews.com, it's free

Valeur associée
  Libellé Bourse Dernier Var. Vol.
Vous devez être membre pour ajouter des commentaires.
Devenez membre, ou connectez-vous.
Aucun commentaire n'est disponible pour l'instant