Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications
Dada Acquires Blogo, the most popular specialised blogging network in Italy
Blogo is one of the top 10 Italian Web Properties
with 3.3 million single users per month and over 16 million monthly page visits.
Florence, February 22, 2007 – Dada, a leading international provider of Web and mobile community and entertainment services (listed on the Italian Stock Exchange: MTAX STAR Segment: DA.MI), through its subsidiary Dadamobile, today finalised the agreement for the acquisition of 30% of E-Box S.r.l., which owns the Blogo platform. Dada has also signed an agreement which will allow the company to raise its stake to 100% of E-Box S.r.l., within the next 2 years.
Founded in January 2005, with its headquarters in Milan, E-Box, through its platform called Blogo, carries out Nano-Publishing. Blogo is the most visited network of specialised blogs in Italy and amongst the top 10 Italian Internet Web Properties with over 16 million monthly page visits and approximately 3.3 million single users per month (font: Audiweb/Nielsen, January 2007).
“Nano-publishing allows readers to find specific and concise quality information on-line which is up to date and which complements the institutional on-line information.” Paolo Barberis, Chairman of Dada, said. “Autoblog.it pages, dedicated to the car industry, or Deluxeblog.it for luxury shopping, or Downloadblog.it, a specialised software and web services news site, all represent an innovative model and tool for multimedia communications.”
E-Box predicts closing its 2006 financial report with revenues equal to Euro 420,000, a figure which is mainly attributed to advertising sales - with more than 10 of the top advertisers having a permanent sponsorship contract with the company – and an EBIT of Euro 50,000 (equal to an approximate EBIT margin of 12%). E-Box has no employees and is managed by the 4 co-founders who coordinate the activities of over 50 bloggers.
In line with the development strategy directives of Dada, which include as a priority the strengthening of its leadership in the blog sector, the acquisition of Blogo will also mean certain industrial sinergies can be taken advantage of: amongst which is Dada Ad, the Dada advertising agency, will take over the exclusive advertising management rights for the whole of the Blogo network.
The 30% stake in E-Box S.r.l. will be acquired by Dadamobile for the sum of Euro 720,000 from existing capital Group funds and will be executed in 2 phases of equal amounts. The first will be executed at today’s Closing agreement, and the second will be executed one year from today’s Closing. Together with the capital stake, Dada has been given certain management rights which particularly refer to the nomination of the representatives of the governing bodies and management of the Company and also voting rights on the board and in important board meetings.
Moreover, options to subscribe to the buying and selling of the residual share capital were made in order for them to be exercised after the 2 years from the Closing and once certain conditions have been verified.
It must be noted that the previously projected objectives communicated to the market by Dada did not take into consideration the related impact of the acquisitions and any impact of this operation on the guidance will be communicated at a later date.
