Digital marketing company Matomy revives IPO at a lower valuation

One specific difference between the FX industry and other segments within the financial sector is the reliance on internet-based technology across the entire cycle of business, from client acquisition, to handling of funds, across signal provision and social trading platforms, to website content management and customer relations systems. In short, retail FX is a truly online business.

As a result of this, combined with the necessity for all retail firms to continually invest in seeking new clients, a number of dedicated digital advertising agencies have established themselves and concentrated their efforts toward working closely with FX companies in order to manage their client acquisition campaigns.

One such firm is Matomy Media Group, which was founded in Israel by Ilan Shiloach, and had planned to go public recently, at the time when many firms across the FX industry were also planning high value initial public offerings (IPO).

Whilst this did not materialize at the time when the firm initially planned its IPO for $100 million at a company value of $400 million due to it having been unable to pass the 25% threshold of European investors required by the London Stock Exchange, Matomy Media Group has now advised investors in London during the past few days that it will raise $75 million at a company value of $350 million after money ($275 million before money). The company also announced that it is book covered to raise the full amount of $75 million.

Israel is well known among senior FX industry figures to be home to a great many companies which provide solutions to FX companies globally, with a number of very successful technology companies, platform providers, broker solutions firms and a plethora affiliate marketing companies having carved out a truly global corporate client base, resulting in vast profits.

The anticipation of such a high value IPO is certainly in line with Matomy Media Group’s domestic competitors, with smaller rival firm Marimedia’s IPO in May this year of £29.8 million (about $50 million) in its offering on the London Stock Exchange’s AIM market, with more than half that figure (£17.9 million) going to the company and £11.9 million going to selling shareholders. The company’s post IPO valuation at the time was £95 million (about $160 million). Marimedia recorded revenues of more than $43 million in 2013, generating $8.7 million of EBITDA, and the company has no debt.

The solvency of many companies in Israel owes much to the specific business model which many companies adopt upon initial start up. Israel has gained the enviable accolade as ‘Start up Nation’ following Dan Senor and Saul Singer’s book which details the reasons why the small country has more successful technological start ups and more venture capital investment than any other region in the entire world outside California’s Silicon Valley.

It is very common for Israeli firms with ingenious ideas to obtain private equity funding or venture capital, which not only provides the right expertise to assist in success, but also ensures that the company has no debt from start up to IPO. The vast majority of such companies are highly successful, often presenting high value IPOs within a matter of 5 to 6 years after start up. This success story in turn continues to fuel interest from venture capital funds to invest in budding entrepreneurial companies.

In September this year, LeapRate will host the Forex Innovators conference in Tel Aviv, Israel, giving the entire industry the opportunity to investigate this in detail, with a specific focus on ensuring that networking can be conducted. The majority of Israel’s successful companies from across the entire FX industry will be present, as will a series of venture capital companies.

The format of the conference focuses on ensuring that all industry participants are able to engage with exhibitors, whilst panels will consist of demonstrations of innovative aspects of the FX industry which aim to lower the cost of client acquisition, enhance trading performance, and raise the value of retail FX firms. At the Forex Innovators conference, it will be apparent to all attendees as to the ethos behind the successful and high value business model which Israel’s firms have embraced, to the advantage of worldwide business.

Matomy Media Group’s reported first quarter revenue of $68 million (preform including Tem Internet) up from $54 million in the corresponding quarter of 2013. EBITDA was $6.9 million up from $4.2 million in the corresponding quarter.

LeapRate looks forward to welcoming all attendees to the Forex Innovators conference, with registration available now by clicking here.

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