Mondadori signed the contract with Banzai for the acquisition of Banzai Mediumi.e. division vertical content of the Banzai Group, which with 18,2 million users a month and almost 2,3 million every day is the Italian leader in profiled audiences, particularly in the information, cooking, and female and young audiences.
The terms of the operation – indicates a note from Mondadori – give Banzai Media Holding a enterprise value of 45 million euros, divided into a fixed component of 41 million euros and an earn-out of 4 million euros.
The consideration for the acquisition at closing - net of an estimated normalized net financial debt of 16,4 million euros (which includes financial payables to the parent company Banzai and 3,3 million euros for deferred price components relating to some equity investments) – is equal to 24,6 million euro.
The expected earn-out in favor of Banzai will be paid upon the possible achievement of predetermined results for the three-year period 2016-2018. The agreement also provides for Banzai Spa, which after the sale of Banzai Media focuses on e-commerce, the availability of advertising space, over a three-year time horizon, with an estimated benefit of around 7 million.
Banzai is the first Italian operator in e-commerce, with 18 million customers a month, and is also listed on the Stock Exchange, where after the news it lost 0,72% to 3,84 euros per share. The reaction of Mondadori investors was quite different, as they approached the euro threshold per share, gaining more than 4% by mid-morning.
