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Primary Ads
Background
PrimaryAds Inc. (the “Company”) is a leading provider of affiliate marketing services that connects Web site publishers with online advertisers. The Company derives its revenue from pay for performance cost per action (“CPA”) advertising, which involves the sale of leads generated through a network of online affiliates. PrimaryAds, which began operations in the fall of 2003, has quickly become one of the leading online affiliate networks.
“KPMG Corporate Finance’s extensive experience advising online advertising companies was fundamental to its ability to deliver superior financial advice and ensure that we closed a transaction with the right partner.”
The Situation
With the rapid growth of the Company, the shareholders were seeking to realize a portion of the value they created while preserving the ability to participate in the future growth of the business. The preferred strategic partner would enhance the growth of its existing CPA business and position the company as part of a broader online marketing services solution.
The Transaction
KPMG Corporate Finance ran a competitive process to identify the strategic acquirer that would enable the shareholders 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 negotiated a transaction with CGI Holding Corporation (doing business as Think Partnership Inc.) The transaction provided $10 million in cash at closing with an ability to earn up to $16 million additional consideration based on performance of the Company post-closing.
