Claranova has completed the signature of the final agreement for the takeover by Avanquest, its Internet division, of the Canadian group holding the Upclick, Lulu Software and Adaware businesses.
This international Internet group has three areas of expertise:
E-commerce processing through Upclick
document management and PDF applications with Lulu Software
Internet security with the Adaware anti-virus and security solutions
This transaction fits perfectly with Claranova's strategy and embodies the transformation of its Avanquest division, now firmly focused on monetising internet traffic. With the integration of these profitable and high-growth businesses, Avanquest will launch a virtuous cycle generating increased revenue and profit.
The integration of these new businesses will enable Avanquest to attain 25 million unique visitors per month(+257%) and close to 40 million customers (+186%), increasing the number of monthly downloads by 433%, multiplying by 15 the number of installed software products to reach 500 million, and increasing the number of annual transactions to 1.2 million(+300%).
Synergies expected to significantly improve the Internet division’s profitability
The highly complementary nature of their activities, the work experience shared by the teams and the synergies to be implemented should generate even more improvements in the Avanquest division’s revenue and operating margin.
As already announced, the acquisition balance of €17 million will be financed by a loan, currently under negotiation, and repaid in full from operating profits of the acquired companies.
For Pierre Cesarini, CEO of the Claranova group: “the initial operating results of these acquisitions are already excellent and extremely encouraging going forward. The Claranova group will continue its consolidation strategy to make its Internet subsidiary, Avanquest, a major European player in the monetisation of internet traffic and reach the €100 million revenue milestone, with profitability of 15% to 20%, as quickly as possible.”