Eniro acquires DinPris AS with goal of becoming Nordic price-comparison leader
Eniro is entering the price-comparison market through the acquisition of the Norwegian company DinPris AS. The acquisition will provide Eniro a solid platform from which to expand and strengthen its Internet offering and is a major step toward a more transaction-based business model. Eniro is also to acquire Webdir, a rapidly expanding player within the local directory segment in Denmark.
The purchase price for DinPris amounts to SEK 31 M. In addition, a variable amount not exceeding SEK 31 M will be paid based on earnings over a three-year period. DinPris will be consolidated as of February 1, 2006. The acquisition will initially have a marginally negative effect on Eniro’s earnings (EBITDA) in 2006 but is then expected to make a positive contribution.
“Our goal is to become the Nordic leader in the price-comparisons segment,” says Eniro Group CEO Tomas Franzén.
“The acquisition is in line with Eniro’s strategy to bring users closer to transactions. It will also provide opportunities for Eniro to provide advertisers with increased value,” says Cecilia Geijer-Haeggström, Eniro’s Product and Marketing Director.
DinPris offers an independent price-comparison service, with the focus on meeting the consumer’s needs. The Norwegian company was founded in March 2004 by Ayman Mackouly, who will remain with the company. DinPris will operate as a separate business unit within the Eniro Group and its financial results will be reported as part of Eniro’s operations in Norway. Eniro will continue to build on DinPris partner strategy.
“DinPris’s success derives from having an objective and independent price-comparison service towards both the retailers and the consumers. A major part of our success is also due to our innovative technology, which makes us the best player in our niche,” says Ayman Mackouly.
In Norway, DinPris has approximately 300 customers (web shops). Establishment of DittPris in Sweden has just commenced and currently some 120 customers have signed up. The service will also be launched in Finland and Denmark. DinPris/DittPris will continue as own sites but the content will also be linked to Eniro’s Internet services (e.g. eniro.se).
Eniro acquires Webdir
Eniro is also acquiring the operations of Webdir, which is active within the local directory segment in Denmark. Webdir also strengthens Eniro’s position within Internet services by expanding the customer base and providing an increased local content in the search services segment in Denmark.
The company reported sales of slightly more than SEK 20 M in 2005 and will be consolidated within Eniro Denmark as of February 1, 2006. The effect of the acquisition on Eniro’s income statement will be marginally positive. The purchase price amounts to SEK 32 M.
Webdir publishes eight local directories and supports an additional 50 directories through its directory-publishing system. Webdir has more than 20 years experience of developing and producing local telephone directories and is a market leader within this field. Webdir’s two founders will continue to work for the company following the acquisition.
“Local directories are an expanding segment in Denmark and this acquisition means that we consolidate our leading position. The publishing areas for the Webdir directories and partnerships are an excellent complement to Eniro’s two brands in Denmark, namely Mostrup Vejviser and Den Røde Lokalbog,” says Eniro Group CEO Tomas Franzén.