Digital advertising technology company Matomy Media Group Inc. plans a 2014 initial public offering in London at a valuation of between $400 and $500 million, Israel’s Globes business daily reported, citing unnamed sources.
Matomy was founded in 2006 by CEO Ofer Druker, Adi Orzel and Kfir Moyal. In 2010, Ilan Shiloach, chairman of the Israeli arm of international advertising giant McCann Erickson and his partner Nir Tarlovsky made a strategic investment in Matomy as part of their move into Internet advertising. In 2009, Shiloach and Tarlovsky founded TheTime technology incubator to nurture new media start-ups, and Matomy is based in the same building, in Tel Aviv’s Ramat Hahayil.
Shiloach has a controlling stake (29%) in Matomy, and other major shareholders include Viola Private Equity (22%), CEO Druker (9%), and Tarlovsky (8%). Other shareholders include Universal McCann Israel CEO Alon Stern, publicist Nissim Douek and ad producer Nirit Yaron, the partner of advertising executive Ori Pridan, also an investor in TheTime.
An IPO plan was shelved for early 2013 because of market conditions, Globes said.
The company’s main source of revenue is from Matomy Media – its ad network, with 500 customers advertising on 7,000 sites and platforms in 85 countries. The company is believed to be exceptionally profitable, Globes said. Revenue for 2013 is expected to reach $300 million, up 50% from 2012.
Matomy has also been very acquisitive abroad. In the U.S., it recently paid $6 million for Mobaff, which develops technologies and platforms for marketing and advertising on mobile networks. In January, Matomy paid $10 million for U.S. digital media agency MediaWhiz. It paid $30 million for U.S. digital ad company AdPerion in July, 2011, and also bought Mexico’s Ergos Media for a foothold in the Latin American digital ad market.