Shares of Affle (India) climbed as much as 8.6 per cent to Rs 1,949 apiece on the BSE on Monday after the company announced it has signed a definitive agreement to acquire Spain-headquartered Mediasmart, a self-serve mobile programmatic and proximity marketing platform.
At 09:34 am, the stock was trading over 5 per cent higher at Rs 1,886 on the BSE. In comparison, the benchmark S&P BSE Sensex was trading over 1 per cent or 479 points higher at 38,753 levels.
The acquisition of Mediasmart carries a great strategic merit as it strengthens Affle’s cost per converted user (CPCU) based platform and business model for omnichannel advertisers, and also enables Affle to expand into newer developing markets like Latin America and in Mediasmart’s strong hold markets like Europe and US, the company said in its press release. READ MORE
“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 & Latin America. 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,” said Anuj Khanna Sohum, Chairman, MD and CEO at Affle.
Shares of Affle (India) were listed at 25 per cent premium at Rs Rs 930 over the issue price of Rs 745 in August last year. Since its listing, shares of the company have jumped 141 per cent (as of Friday’s close – February 28, 2020) against its issue price. In comparison, the benchmark Nifty50 has gained over 1.5 per cent.
For December quarter (Q3FY20), the company had posted a 31.3 per cent increase in consolidated net profit at Rs 21.4 crore. It had reported a net profit of Rs 16.3 crore during the same period a year ago.
The company’s revenue increased 27.4 per cent during the quarter under review to Rs 94.5 crore from Rs 74.1 crore in the corresponding quarter of 2018-19.