SINGAPORE Telecommunications (SingTel) is acquiring the Adconion group for US$209 million, excluding debt.
Its wholly-owned subsidiary, Amobee Group Pte Ltd, has entered into a conditional agreement to acquire 100 per cent of the share capital of Adconion Media Inc and Adconion Pty Ltd.
Adconion is a cross channel digital advertising group with operations primarily in North America and Australia. It offers digital advertising solutions for Fortune 500 brands across five key marketing channels - display, video, mobile, email and social - on all devices from a unified technology platform.
Adconion Media is incorporated in Delaware, USA, and Adconion Pty Ltd is incorporated in New South Wales, Australia.
The enterprise value of Adconion is US$235 million. The aggregate consideration of approximately US$209 million excluding debt is subject to working capital adjustments. The valuation was arrived at after an assessment of Adconion's assets and business prospects. The consideration will be paid in cash.
The agreement also provides for up to US$20 million in earn-out and retention benefits for the key employees of Adconion, subject to the achievement of certain key performance indicators.