London based Marimedia (AIM: MARI), a proprietary marketing ad-technology solutions company has entered into an agreement to buy AreaOne Ltd. a marketing technology company and accredited Facebook Marketing Partner, for up to $17 million in cash and shares over a two-year period.
“The acquisition is in line with the company’s stated strategy of investing in mobile marketing and social media network solutions to remain at the forefront of the market, ” said Marimedia (soon to be renamed Taptica) .
Marimedia said it will initially pay $10 million in cash from its own resources and $2 million to be satisfied by the allotment of 2.1 million new shares based on a share price of 61 percent.
Based in London Marimedia was founded in 2007 by two Israeli friends, Maia Shiran, and Ariel Cababie. AreaOne was founded in Israel (2011) by Alon Michaeli.
Advertising Spend on Social Networks on the Increase
Worldwide spending on social network advertising is anticipated to continue to grow and to account for an increasing proportion of all digital ad spending (eMarketer, April 2015). In 2015, worldwide social network ad spending is expected to reach $23.68 billion – an increase of 33.5% over 2014.
In the US, social network ad revenues are set to more than double from $4.67 billion in 2013 to $9.59 billion in 2015, and grow a further 50% over the next two years to $14.4 billion in 2017. Equally, the proportion of digital ad spending represented by social network ad spending is expected to increase from 10.8% in 2013 to 19.3% in 2017.