freenet Group accelerates Digital Lifestyle activities with acquisition of Jesta Digital Group
Frankfurt, 16 December 2013. freenet Cityline GmbH, a wholly owned subsidiary of freenet AG, today signed a purchase agreement to acquire all shares in Jesta Digital GmbH, Jesta Digital Holdings, Inc. and Jesta Digital Group U.S. Holdings, Inc.
With around 300 employees in offices in Berlin and Los Angeles, the Jesta Digital Group is a leading global provider of leading-edge digital entertainment content and of services for users of digital applications. Beyond ringtones and dial tones, its range includes logos, full-track music, mobile games and videos, as well as other fun/lifestyle applications including very popular offerings such as ‘Bitbop’, a portal for downloading premium content, the mobile dating platform ‘iLove’, and ‘Alta Editions’, a site for online-cookbooks.
Jesta Digital Group currently reaches around 100 million customers in more than 50 countries via its own mobile advertising platform, ‘Motility Ads’; the company has operations in Germany, the US, and other countries such as Italy, Austria, Switzerland and Brazil. Its business model and reach make Jesta Digital an attractive partner for networks, mobile communications companies and content providers. Mobile content is sold directly to customers using their billing relationships with more than 60 mobile operators worldwide, and the content is supported by all major mobile devices and platforms.
Jesta Digital has proven mobile marketing and direct-to-customer marketing skills, and comprehensive expertise as a marketer and buyer of media services. Leveraged in the network of freenet Group companies, this know-how will contribute to a successful development of the freenet Group and its Digital Lifestyle activities. The acquisition of Jesta Digital Group expands the freenet Group’s product range and reach and opens up international customer potential for its mobile services and content.
“We have successfully cooperated with Jesta Digital Group for more than ten years now. With the acquisition, we are consequently continuing our expansionist course in the Digital Lifestyle area, while also further reducing our dependence on the classic, ARPU-driven mobile communications business. The continued proliferation of smartphones and tablet PCs, and of data-friendly mobile tariffs, lead to a dynamically growing demand for mobile digital lifestyle applications, and we will seize these opportunities.”
– Christoph Vilanek, CEO of freenet AG
The acquisition is subject to the usual regulatory approvals. The transaction is expected to close early in the year 2014. The parties have agreed to keep the purchase price confidential.
Corporate Finance Partners – now ACXIT Capital Partners – acted as the exclusive adviser to Jesta Digital GmbH and its shareholders.
About Jesta Digital Group
Jesta Digital Group is a leading global provider of next generation entertainment content and services for the digital consumer. A proven innovator for over 10 years, the company continues to develop and introduce exciting new products that deliver a seamless entertainment experience via web or wireless connection on a broad range of devices. Jesta Digital is home to a number of well-known and established brands including Jamba, Jamster, iLove, and Mobizzo. (www.jestadigital.com)
About freenet Group
freenet Group, is the largest independent telecommunications provider in Germany. The Group offers its customers a comprehensive portfolio of services and products, primarily in the field of mobile voice and data services. As a mobile service provider, the freenet Group has no network infrastructure of its own but markets, under its own name and for its own account, mobile communications services for the mobile network operators Telekom, Vodafone, E-Plus and O2 in Germany. In addition, the freenet Group particularly sells mobile communications devices and accessories as well as additional services in the field of mobile internet/digital lifestyle. (www.freenet-group.de)
About ACXIT
ACXIT Capital Partners is a leading independent corporate finance and investment advisory firm for mid-market clients and entrepreneurs in Europe and beyond. Since 1998, ACXIT offers its clients comprehensive corporate finance advisory services including M&A and capital markets advisory as well as restructuring, equity/debt and strategic advisory. As an independent, privately owned firm we maintain offices and representations in Frankfurt, Berlin, Munich, Leipzig, Zurich, Hong Kong and New York, as well as strong alliances in France, China and India. (www.acxit.com)
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