CORRECTED – (OFFICIAL)-Online ad firm Adsmarket sees sales up 33 pc

(Company corrects spelling of CEO’s last name to Druker from
Drucker throughout)

* Adsmarket sees sales of $80 mln in 2010

* Third-largest player in European affiliate market

* Viola to invest $17 mln, take 21 pct stake in Adsmarket

By Tova Cohen

TEL AVIV, July 12 (BestGrowthStock) – Israeli Internet advertising
group Adsmarket expects sales to jump by a third in 2010 as it
expands into rapidly growing markets in the United States and
Latin America, its chief executive told Reuters on Monday.

“We want to build a global company,” Ofer Druker said. “In
the beginning of the year we established an office in Madrid. We
will establish a business in Mexico in the next few months and
in the beginning of next year we’ll launch activity in Brazil.”

It plans to open a business development office in the United
States by the end of this year as well.

Founded in 2007, Adsmarket expects to post sales of $80
million in 2010, up from $60 million last year. The company is
profitable, Druker added.

To help finance its expansion, Adsmarket will use part of
the funds from a $17 million investment by Viola Private Equity.

Viola, which will hold 21 percent of Adsmarket, will spend
$12 million to buy shares from existing shareholders and invest
$5 million in the company, Adsmarket said. Following the
investment, it will be valued at $80 million.

Adsmarket Chairman Ilan Shiloach, head of Israel’s top ad
agency, McCann Worldgroup Israel, will hold a 29 percent stake.

Adsmarket enables advertisers to market goods and services
through its network of online publishers. The company earns a
commission for every transaction completed via its platform.

It is the third-largest player in “affiliate” advertising in
Europe after Sweden’s TradeDoubler (TRAD.ST: ) and Berlin-based
Zanox, a joint venture between German media group Axel Springer
(SPRGn.DE: ) and Swiss PubliGroupe (PUBN.S: ).

Commission Junction, a subsidiary of ValueClick (VCLK.O: ), is
the world’s biggest player, Druker said.

The affiliate market accounts for 9 percent of the $84
billion in global online ad spending. It is growing 15 percent a
year and is expected to reach $9.5 billion by 2012.

Adsmarket has over 300 advertisers, mainly in the mobile
content, games, education, travel and fashion industries. It has
a network of a few thousand publishers.

Viola Private Equity, a buyout and growth capital technology
fund, is an affiliate of the Viola Group, a private equity
investment firm with over $1.8 billion under management.
(Editing by Michael Shields)

CORRECTED – (OFFICIAL)-Online ad firm Adsmarket sees sales up 33 pc