Affle India Shares Climb Over 8% After Mediasmart's Acquisition
Affle (India) Ltd shares climbed over 8% in intra-day trade on Monday after the company signed a definitive agreement to acquire Spain’s advertising technology company Mediasmart.
At 11:33 am, Affle India shares were trading at Rs 1,909.75 apiece, up 6.2% from their previous, after hitting the day’s high of Rs 1,947. The stock has risen by a massive 120% in the last one year compared with a 2% rise in the benchmark Nifty 50 index.
Mediasmart provides advertisers, trading desks and agencies an integrated mobile advertising platform with unique incremental impact measurability for Proximity and App marketing campaigns, Affle India said in a statement.
Affle India added the Mediasmart acquisition carries great strategic merit as it strengthens its CPCU (cost per converted user)-based platform and business model for omnichannel advertisers, and also enables the company to expand into newer developing markets like Latin America and in Mediasmart’s stronghold markets like Europe and the US.
“We are excited to announce our 1st acquisition in Europe and welcome the Mediasmart team onboard at Affle. Mediasmart has the perfect team, culture and tech platform for Affle to build greater strategic presence in Europe, US and Latin America,” said Anuj Khanna Sohum, Chairman, MD and CEO at Affle.
“Their proximity marketing programmatic platform strengthens our omnichannel platform to enable marketers to drive incremental online and offline conversions in both developed and emerging markets,” he added.
Affle India had recently announced that its consolidated net profit rose 31.3% to Rs 21.4 crore in the December quarter compared with a net profit of Rs 16.3 crore during the same period a year ago.