We remain committed to our core PR market and expect to leverage our existing customer base. At the same time we will focus on a subscription based revenue model and extend our services into content marketing.
Our partnership with PitchEngine will further improve our social media offering for communication professionals. As we roll out the PitchEngine platform throughout the group, we will develop our customers’ ability to share content optimized for the social web. Also, by cooperating with PitchEngine, we contribute to the convergence between the public relations, communication and marketing areas, which over time should increase Cision’s addressable market size considerably.
This divestment is another important step towards completing the transformation of our European region, from a labor intensive, low growth operations to a much leaner, software driven business, with high gross margins and a large share of recurring revenues. Following a total of six divestments in Europe in the past three years, we believe we are now much better positioned for profitable growth in the years to come.
Erik has played a major role at Cision in the 3.5 years he has been with the Company as CFO and Executive Vice President, and of course I’m sad to see him leave. Today, Cision is a stable and financially sound company with a strong balance sheet, our award winning CisionPoint software and a growing market ahead of us. We would like to thank Erik for his great contributions to Cision and wish him success in his new position.