Russian mobile major Veon (former Vimpelcom) acquired a majority 60% in local adtech company OTM, with the possibility of increasing the stake to 100% if certain KPIs are met.
bne IntelliNews already reported that Veon eyed OTM at an estimated valuation of RUB2bn ($27.7mn) (RUB1.3bn for 60%), in line with its intention to expand non-telecom services. At the same time, most recent reports claimed that mobile major could be looking for cash in a long-delayed sale of tower infrastructure assets.
OTM was created in 2010, offers services of programmatic ad buying, and owns Videonow and VideoTarget digital ad networks. Its key asset is a technology platform for the automation and planning of online advertising purchases, which Veon believes it can expand into other countries of presence.
"The deal was expected and is in line with Veon’s strategy, in which adtech is one focus area in non-telecom services," BCS Global Markets commented on June 17 while affirming a Hold rating on Veon's shares.
Sova Capital sees the news as marginally positive for Veon, as the deal should complement the company’s core mobile business, and it could strengthen Veon’s B2B services offering. "However, it is still early days, and it remains to be seen how much traction OTM will gain within Veon's ecosystem," Sova analysts note.
Sova Capital maintained a Hold rating on Veon's shares, which trade at an estimated 2022 Enterprise Value/EBITDA of 3.4x.
As reported by bne IntelliNews, in previous quarters Veon saw an improvement in Russia and other main markets, but provided no clear guidance on the 2021 dividend and had high management turnover.
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