Eniro acquires the leading online directory company in Denmark
By acquiring 100% of Krak, Eniro is becoming the largest directory online player in Denmark.
Eniro Denmark has acquired 100% of Krak from the Krak Foundation for approximately SEK 500 M (DKK 400 M). Cost synergies of approximately SEK 25 M (DKK 20 M) are expected to be realized in 2008 and approximately SEK 37 M (DKK 30 M) in 2009 from the merge of Krak and Eniro in Denmark. The price/EBITDA multiple based on forecast EBITDA 2008 including synergies is approximately 9. The effect on earnings per share and cash earnings per share are expected to be slightly negative for 2007 and accretive from 2008. The acquisition is subject to approval by competition authority.
“Eniro is now able to take a leading online position in Denmark. Krak.dk is the leading directory website in Denmark, and Krak.dk is among the five largest websites overall in Denmark. Eniro.dk has a top-ten position in Denmark and with the acquisition of Krak, our online position will be very strong. Eniro is already the leading company in Denmark in local printed directories, making Krak a perfect match for Eniro. By combining Eniro's strong sales force with Krak's leading traffic position, we create good growth opportunities on the fast growing Danish online market,” says Henrik Dyring, President of Eniro Denmark.
“With the acquisition of Krak, we further strengthen our position as the leading search company in the Nordic countries. I am very pleased that we have been able to do this acquisition,” says Tomas Franzén, CEO and President of Eniro AB.
Krak is a well-established and recognized brand in Denmark with a long history extending back to 1770 when it started publishing directories in Denmark. Today, it is the leading online directory company in Denmark in terms of number of unique visitors and yellow-page searches. Krak produces and distributes offline and online maps, has B2B directories (online/offline) and offers portal solutions to the public sector. For the fiscal year 2006/07 (ending April 30), revenues were SEK 254 M (DKK 206 M), of which online revenues were 55 per cent, and EBITDA of 29 MSEK (24 MDKK). Krak has 270 employees. Krak will be consolidated in Eniro from June 1, 2007. Historical figures for Krak have been reported according to Krak’s accounting principles, by which both offline and online revenues are reported according to the publication method.