Walla! - A wholly owned subsidiary of Bezeq announced today (Tuesday) that it has signed an agreement to sell 100% of the share capital of Coral Tel, operator of the Yad 2 website, which is the leading classifieds website in Israel, to Axel Springer Digital Classifieds ASDC, a joint venture of Axel Springer - the leading media corporation in Europe, and the investment fund of General Atlantic. The transaction amount is NIS 787.5 million in cash, and after price adjustments the price is expected to be NIS 806.3 million. Completion of the transaction is subject to regulatory approvals and other conditions included in the sales agreement.
Yad 2 was founded in 2005 by Shawn Tel and quickly became the leading board site in Israel. About four years ago, in July 2010, Walla purchased 75% from Mead 2 for NIS 117 million, at a value of NIS 156 million. In November 2013, Walla exercised an option it had, and purchased the remaining 25% from the founder for NIS 50 million, at a value of NIS 200 million. Yad 2 employs about 100 people and the company, which is based in the Walla building in Tel Aviv, has a development and sales center in Haifa.
Expressing confidence in the Israeli Internet market
Ilan Yeshua, CEO of Walla and Chairman of Yad2, said: "The deal and the value reached by Yad2 constitute an expression of confidence in the Israeli Internet market in general and in the achievements of the Yad2 website in particular. Yad2 is an excellent example of a local Internet company that has managed to improve over the years, and create real value for its founders, owners, employees and the Israeli economy.".
Yeshua added: "There is no doubt that founder Shawn Tel, with his vision and special abilities, is responsible for establishing one of the largest and most significant Internet assets in the Israeli market ever." Referring to the identity of the buyers, the CEO said: "Along with price considerations, it was very important for us to choose a buyer who could ensure the continued development and success of Yad2. Axel Springer is a strategic buyer who owns a significant number of bulletin board sites around the world. This fact, along with the company's financial resources and its massive activity in the digital field, make it an ideal buyer. I am convinced that the entry of Axel Springer, known for its sympathy and commitment to Israel, into the local market will be only the first step, followed by more investments and collaborations with Israeli companies for the benefit of the economy and the local Internet industry. I have no doubt that the company and its employees are moving into good hands.".
The acquiring entity is a joint venture of Axel Springer (70%) and the General Atlantic Investment Fund (30%), which was established several years ago and aims to make Axel Springer one of the world's leading digital publishers through a growth strategy that combines organic growth and acquisitions. The venture holds an impressive portfolio of online boards in Europe.
Dr. Andreas Villa, Senior Member of the Axel Springer Management Board and President of Marketing and Digital: "Yad2 is a clear market leader, very profitable and growing rapidly, and is therefore a perfect fit for the international division of bulletin board sites that we own.".
16 million visitors per month
Yad2 is the leading bulletin board site in Israel and one of the strongest Internet brands in the country, with brand awareness of approximately 100%. Every month, the site receives 3.8 million unique users and 16 million monthly visitors. Over 50% of the site's traffic is via mobile devices, and over 10,000 ads are uploaded to the site daily in the fields of real estate, automobiles, and Yad2 products.
The global tablet sector is characterized by rapid growth and, accordingly, high multiples. Yad2 is performing excellently in all key parameters compared to similar companies worldwide, and continues to grow at a rapid pace. Since the acquisition, the site has doubled its revenues and almost tripled its operating profit, while the operating profit margin has increased from 36% to over 50%.
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