Verve Group SE has announced an agreement to acquire 100% of the interests in Jun Group, a leading mobile advertising company based in the United States. This acquisition is set to strengthen Verve's demand-side business, complementing its existing supply-side focus, and promises to enhance relationships with leading brands and media agencies in the US.

Jun Group has carved a niche for itself in the mobile advertising landscape, with a special focus on the demand side and strong relationships with leading brands and media agencies. The acquisition by Verve is expected to result in a more balanced sales model, with 30% demand-side business and 70% supply-side business.

The transaction is expected to significantly increase Verve's size and profitability, adding approximately 23% revenue and 43% adjusted EBITDA to the group. The total consideration for the acquisition, on a cash and debt-free basis, amounts to EUR 170 million.

Verve's 2024 guidance has been increased to €380-400 million in revenue and €115-125 million in adjusted EBITDA, due to the acquisition. The company has also updated its mid-term financial targets to 25-30% Revenue CAGR, 30-35% EBITDA margin, 20-25% EBIT margin, and has reduced the net leverage target to 1.5-2.5x.

"Over the past few years, we have built Verve into a strong, organically growing media company with a primary focus on the advertising supply side. With Jun Group, we are now significantly strengthening the demand side, which will enable us to achieve significant synergies. With a better balance between supply and demand, we can further increase transparency and efficiency for our clients, both publishers and advertisers, in line with our mission 'Let's Make Media Better'. In summary, this acquisition takes Verve to the next level, both operationally and in terms of growth and profitability, while reducing leverage," said Remco Westermann, CEO of Verve.

The combination of Verve and Jun Group is expected to result in proforma revenues of approximately €447 million and EBITDA of €151 million in 2024. The acquisition is expected to close around September 2024, pending regulatory approvals.