Thanks to the agreement on the acquisition of the leading German online financial information portal, onvista.de, Boursorama (Paris:BRS) makes its German online brokerage business model evolve into a media-brokerage business model, identical to the one developed in France.
With the agreement on the acquisition of 77.4% of OnVista AG's capital, which will be effective following approval by the German antitrust authorities, Boursorama is launching a public offering with the aim to get 100% of the company's capital.
With 1.04 million unique visitors and 72 million pages viewed per month (Source: Nielsen Net Ratings), onvista.de is the leading German online financial information portal. This portal offers dense and organised information on all financial issues (dispatches, real time and historic share prices, data on listed companies, etc.) to an audience largely affluent. OnVista's audience is twice the one of its main competitor (1).
OnVista posted revenues of EUR 14.1 million in 2006, up 45% in one year, for net income of EUR 1.6 million. The strong dynamism across OnVista's businesses was confirmed in 2007. In the first half of 2007, OnVista posted revenues of EUR 11.3 million and a net income of EUR 1.9 million.
OnVista + Fimatex: Boursorama's winning strategy in Germany
Boursorama has been present in Germany since 1997 through its online brokerage subsidiary, Fimatex, active mostly in warrants and derivatives products. The combination of Fimatex and OnVista's activities will allow the new entity to accelerate its development in online savings in this country. The power of the website onvista.de will allow to promote with efficiency Fimatex' offer but also to distribute savings products in the medium term.
Boursorama is therefore reiterating in Germany the strategy that it developed in France in 2002 with the merger of Fimatex with the portal boursorama.com. This move had allowed the group to grow its market share in online trading but also to start with success the distribution of savings products (EUR 2.5 billion at 30 June 2007).
This move also allows Boursorama to strengthen its business in online advertising which benefits from a well-known strong potential.
Furthermore, this acquisition will give rise to cost synergies linked to Internet websites hosting facilities and to the buyout of data feeds (information and share prices).
Financial elements of the transaction
Boursorama signed today the agreement to acquire 77.4% of OnVista's capital and is launching a voluntary public offering with the objective to control 100% of the company and delist it.
This stake will be acquired at a price of EUR 20.6 per share, which values OnVista at EUR 138 million (including EUR 10 million of cash).
Boursorama's solid balance sheet enables the Group to finance this acquisition in cash.
The transaction will be effective following approval by the German antitrust authorities.
Vincent Taupin, Chairman and Chief Executive Officer of Boursorama stated: "The acquisition of OnVista enables us to respond to our ambitions in the German market. The combination of the leading financial portal, OnVista, with our historical online brokerage businesses (Fimatex) will enable the Group to replicate its media-brokerage business model in Germany as OnVista should significantly accelerate client recruitment rates."
Michael W.Schwetje, OnVista's Chief Executive Officer, stated: "The acquisition of OnVista by Boursorama is a powerful opportunity for our company. The combination of the leading financial information portal in Germany with Fimatex's online trading activity will allow to accelerate OnVista's development as it will benefit from the strength of a sizeable media-bank group."
(1) OnVista Group also owns the medical information portal, onmeda.de as well as two online advertising subsidiaries: Ligatus and Ad2Net.