West Australian online marketing company Mpire Media has merged with Fortunis Resources in a deal worth $10 million ahead of a backdoor listing on the ASX.
Founded by Russian-born entrepreneur Zhenya Tsvetnenko in 2006, Mpire Media acts as an intermediary between clients and advertising distribution affiliates. It’s described as a performance-based online marketing solutions provider, billing clients and paying its affiliates only when measurable results, such as a sale or product download, are achieved.
The company worked primarily with companies in Tsvetnenko’s Zhenya Group before relaunching in July last year to pursue other commercial interests. With offices in Perth, Dublin, and Toronto, Mpire has worked with clients including Amazon, Samsung, and Facebook.
In a presentation to investors, Mpire states that it has reached over 200 million consumers in 180 countries, with monthly revenue growing from $55,000 in July 2014 to $1.15 million in February. The global internet advertising industry was worth $117 billion in 2013.
Mpire has also developed a proprietary cloud-based software platform, nxus, which allows for real-time analytics and data tracking. The company is pushing nxus as an SaaS product for stakeholders in the internet advertising industry.
John Rubino, chairman of Fortunis, said that while the company had been considering potential opportunities in the resources sector, Mpire Media was an attractive alternative.
“The board has remained open minded to acquisitions in other sectors that may provide value opportunities, and be in the best interests of, shareholders. The option to acquire the Mpire business provides Fortunis and its shareholders with an excellent opportunity to acquire a rapidly growing, revenue generating player that has positioned itself extremely well within a burgeoning industry,” Rubino said.
The deal will see Fortunis conduct a capital raise, bringing in between $2 million to $4 million through the issuing of new shares worth a minimum of 0.20c.
Tsvetnenko, who’s reportedly worth over $100 million, completed a reverse takeover of energy investment firm Macro Energy with his bitcoin trading company Digital CC last year.