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Matomy Rekindles IPO, Seeks $347 Million Valuation

Israeli ad-tech company Matomy Media Group rekindled its London IPO, seeking about $70.1 million at a $347 million valuation and beginning conditional trading ahead of a planned Friday flotation. After scrapping a previous London listing over a 25% European Economic Area ownership threshold, Matomy joined the London Stock Exchange High Growth Sector to bypass the rule. CEO Ofer Drucker cited strong investor support and noted the acquisition of a majority stake in Team Internet, a direct navigation Internet search company. Matomy operates an affiliate channel, a traditional ad network, and a programmatic buying arm with AppNexus as a partner. Historical revenues for 2011–2013 were $106.7M, $120.1M, and $193.5M, respectively. In Q1 2014, revenues grew about 16% year over year to roughly $57M with 1,676 active customers, including American Express and Bwin; no single customer contributed more than 7% of revenue, and 68% came from longstanding relationships. Since 2011, the company has completed five acquisitions and raised about $17M in venture capital.

Matomy Pulls IPO, Citing ‘Technicality’

Matomy, an Israel-based performance advertising network, scrapped its London Stock Exchange IPO plans to raise about $100 million, valuing the company at around $400 million. The withdrawal was driven in part by the UK Premium Listing rule requiring 25% of shares to be held by investors within the European Economic Area, a target the company said could not be met given international investor demand. The decision also reflected volatility in ad tech share values, cited by the post-IPO performance of peers such as Tremor Media, Blinkx and Rocket Fuel. Despite a well-received bookbuild and sufficient demand, Matomy’s board decided not to proceed and said it was considering other options. Matomy’s business comprises a three-legged model (publisher network, affiliate channel, programmatic sales) with an AppNexus partnership, plus four acquisitions since 2011 and $17 million in venture funding from Viola Private Equity.

The Next Ad Tech IPO: Questions For Matomy CEO Ofer Druker

Israel-based Matomy, a performance marketing network, signaled its intent to go public in a London Stock Exchange filing, aiming to raise about $100 million at a valuation around $400 million. The company has 388 employees and more than 1,500 clients, and operates a three-legged model—publisher network, affiliate channel, and programmatic sales—supported by a global AppNexus partnership, with formats spanning desktop display, mobile, and email. Matomy hopes to become the world’s largest pure-play performance-based digital ads company. Since 2011, it has completed four acquisitions (Adotomi/Adquant, Mediawhiz, Adperio, MobAff) and raised $17 million from Viola Private Equity. CEO Ofer Druker discussed a four-C acquisition strategy (channels, capabilities, countries, clients) and noted about 20% annual top-line revenue growth, aided by AppNexus. The interview touches on publisher networks, the evolution of programmatic, and the potential convergence of marketing tech stacks.