SingTel to Buy Two Digital Ad Companies for $359M

SingTel to Buy Two Digital Ad Companies

SingTel to Buy U.S.-Based Companies for $359 Million

P.R. VENKAT

June 10, 2014 9:00 p.m. ET

SINGAPORE— SingTelZ74.SG 0.00% Southeast Asia’s largest telecommunications company, will buy two U.S.-based digital advertising companies for $359 million, as it seeks to expand its footprint in the highly lucrative digital ad market.

The acquisition is being made by SingTel’s unit, Amobee, which will pay $209 million to buy Adconion’s North American and Australian assets. Amobee will also pay an additional $150 million to buy San Francisco-based Kontera Technologies Inc., SingTel said in a statement Wednesday.

Adconion, which has its primary operations in the U.S. and Australia and countsAT&TT -0.20% Adidas and Toyota Motor 7203.TO +0.60% among its clients, makes ads for video, email and social networking platforms. The company’s revenue for the 2013 was $185 million, SingTel said. Kontera, which tracks content on social media sites, reported $26 million in revenue in 2013. It also has a research and development center in Israel.

 

SingTel says to buy digital advertisers for $359 million

8:41pm EDT

SINGAPORE (Reuters) – Singapore Telecommunications Ltd (STEL.SI: Quote,ProfileResearchStock Buzz) said on Wednesday it plans to buy two U.S.-based advertising companies for a total of $359 million to strengthen its digital marketing profile.

Amobee Group Pte Ltd, a wholly-owned subsidiary of SingTel, plans to acquire the entire stake of Adconion Direct North America and Adconion Australia for $209 million, excluding debt and subject to working capital adjustments.

SingTel also plans to take over Kontera Technologies, Inc., a digital content intelligence and marketing technology company based in the United States, for about $150 million, subject to working capital adjustments.

The largest telecommunications operator in Southeast Asia will also provide up to $20 million and $5.8 million respectively, to each company to retain key staff.

The transactions are subject to fulfillments of certain conditions, SingTel said in a statement.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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