Eniro and Aller expand Internet partnership to Sweden and Finland
In order to increase traffic and revenues on the Internet, Eniro and Aller have reached an agreement regarding the portals Passagen, Spray and Suomi24. With the agreement, Eniro’s Internet strength is complemented by Aller’s media expertise. The ambition is to provide the leading Internet portals in Sweden and Finland.
The agreement will entail establishing a new company in Sweden. The portals Passagen and Spray will be transferred to this new company which will be 50-percent owned by Eniro and 50-percent owned by Aller. Aller will have control over the new company through majority of votes and presidency in the Board. In Finland, Aller will purchase 50 percent of the shares in Suomi24 and Eniro will through majority of votes and presidency in the Board retain control over Suomi24. In total, the transactions will result in capital gains for Eniro of about SEK 80 M before taxes.
Eniro and Aller already have a strong relationship based on the agreement relating to the Norwegian Internet portal sol.no that was reached at the end of 2006. With the partnerships in Sweden and Finland, this relationship is being expanded and strengthened.
“Through the partnership with Aller, we are strengthening our Internet portals in the Nordic countries with the objective of becoming the leading player. I am very pleased with this partnership,” says Joachim Jaginder, acting President and CEO of Eniro.
“This makes us to a large and strong player at the advertising market. We also see possible synergy effects considering the technical platforms”, says Martin Hansson, CEO of Aller Förlag.
About the Internet portals
Passagen is an Internet portal with such services as personal web sites, discussion forums, blogs, dating, news, chat, Alias personal profiles and entertainment. Passagen was established in 1995 and currently has about 850,000 unique visitors per week, with personal web sites and discussion forums as the most frequently used services.
Spray is an Internet portal that includes such services as e-mail, dating, personal web sites and entertainment. Spray also has a web hotel. Spray was founded in 1995 and currently has about 650,000 unique visitors per week, with Spray Mail and Spray Date attracting the greatest number of users.
Suomi24 is Finland’s largest online community with more than one million unique visitors per week. Suomi24 offers such services as dating, discussion forums and chat, as well as e-mail.
About the agreement
In total, Eniro will receive about SEK 90 M for the sale of 50 percent of the shares in Suomi24. In addition, Eniro will pay about SEK 40 M to acquire a 50-percent ownership in the newly established Swedish company. The agreement also includes capital contributions from the parties to both companies, which for Eniro will total about SEK 15 M. In summary, the transactions will result in capital gains for Eniro of about SEK 80 M before taxes. The positive cash flow effect for Eniro is expected to be a net of about SEK 35 M.