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OBMedia LLC
The Company
OBMedia, LLC (doing business as Online Business Media) is a performance-based Internet marketing group. OBMedia provides traffic for search engines and other online advertisers, and also offers affiliate marketing services and banner advertising. Founded in Houston, Texas in 2001, OBMedia has become one of the leading providers of qualified internet traffic for online advertisers.
“KPMG Corporate Finance's knowledge of the online marketing services industry was critical for us to find the right buyer and future partner. Their experience in the middle market and with cross-border transactions enabled them to provide expert guidance at every stage of the process. Furthermore, their ability to drive the transaction process and tirelessly work with an Australian counterparty was critical to meeting our deadlines for deal signing and completion”
The Situation
OBMedia had successfully developed a number of new online advertising technologies that dramatically expanded the Company’s growth prospects and profitability. The shareholders were seeking a partner with greater resources to capitalize on these technologies and to generate liquidity through a sale of ownership. OBMedia retained KPMG Corporate Finance as its exclusive advisor to sell the Company.
The Transaction
KPMG Corporate Finance conducted a competitive process to identify the optimal counterparty that would enable the owners to achieve their objectives and position the Company for future growth. KPMG Corporate Finance developed significant interest through a controlled auction, coordinated management meetings and due diligence, and assisted the owners in successfully negotiating the sale of a 51 percent stake in the business to Photon Group (ASX:PGA), an Australian marketing services company. Photon Group has acquired approximately 30 marketing services companies in Australia and New Zealand and this transaction represented the first major acquisition for Photon in the United States. Photon acquired its 51 percent of the interest in OBMedia for US$7.6 million at closing, and will receive additional payments after year one and year three based on the Company’s performance.
