The rationale behind TargetEveryOne´s acquisition of a majority stake in ViaNett

The purpose is to combine TargetEveryOne´s higher margin services with ViaNett´s large customer base and thereby make both companies´ businesses grow faster, says TargetEveryOne´s CEO Christoffer Andersson. The management in TargetEveryOne and ViaNett would like to give a more detailed picture of the acquisition and the new corporate Group.

ViaNett is a Norwegian leader in marketing, payments and communication via SMS with a good profitability. Although traditional SMS is a competitive market, ViaNett had during the first quarter 2015 a turnover on 29 million Norwegian Kronor with a gross margin of 26 per cent and EBITDA of 8 per cent. The company showed positive earnings and cash flow.

Seen from a five- year perspective, ViaNett´s sales growth amounted to an average of 15 per cent, year over year. In 2014 the company (including the acquisition of Sendega in 2014) represented a revenue of 111,6 million Norwegian Kronor.

Among ViaNett´s reference customers are for example Norwegian, Nespresso and Save the Children. The applications range from reminder services for flight check- in or a return visit to the dentist to donation solutions. ViaNett is today a market leader in donation solutions via mobile in Norway.

TargetEveryOne has growing recurring revenues with more than 50 per cent gross margin that can now be sold to ViaNett´s customers.

Expecting a high usage of TargetEveryOne

TargetEveryOne provides a global scalable cloud service for mobile communication with interactivity, images and videos. The service increases the response rate on mobile campaigns and gives the customer a broader palette of tools for monitoring and follow- up of its communication. According to the company´s measurements interactive content can double the response rate for mobile campaigns.

The acquisition means that TargetEveryOne´s user- friendly service to create attractive mobile campaigns can now be offered to ViaNett´s customers. Together, the two companies form a Nordic leader who meets a growing demand for more efficient mobile services.

Customers are already working actively with SMS distribution, with the established connections to ViaNett´s system. TargetEveryOne´s services become a natural extension of the customer´s existing work processes.

- Our customers are already demanding TargetEveryOne´s services. We expect to grow both the existing business volume and also to increase our gross margin since the new TargetEveryOne´s services gives us the unique competitive advantage in the market, says ViaNett´s Managing Director Stian Laursen Skoglund.

TargetEveryOne becomes 10 times larger

TargetEveryOne´s Swedish operations had sales of 11,4 million Swedish Kronor in 2014. Along with ViaNett, the sales of mobile services represented 127 million Swedish Kronor during 2014.

The companies have high growth ambition for 2015 and with the new TargetEveryOne´s services with a gross margin over 50 per cent, there are good conditions for a growing gross margin at the corporate Group level.

- Nordic revenues over 100 million Kronor and on path towards profitability is just a starting point on our journey. Customers in over 85 countries have already found TargetsEveryOne´s service and with cloud services´ global scalability, we have great possibilities for further international expansion, ends TargetEveryOne´s Managing Director Christoffer Andersson.