Raketech expands into Japan through Casumba deal
Performance marketing specialist Raketech Group is to expand into the Japanese market through the €2m acquisition of Casumba Media.
Raktech has agreed to pay €2.0m (£1.8m/$2.2m) to purchase all outstanding shares in Malta-registered Casumba, which runs a number of affiliate websites in the Japanese market.
The agreement also includes additional earn-out payments based on certain performance measures. Part of this earn-out is capped at €2.1m until December 31, 2021, while the uncapped section will be based on future performance up to July 31, 2024.
Casumba’s founders will continue to be involved with the business and support Raketech with the launch of its products in Japan and possibly other Asian markets in the longer term.
Raketech said that the acquisition will help to increase its revenue outside the Nordic region to approximately 10% of the group total.
“This is another milestone in Raketech’s history and fully in line with our strategy to expand into new markets,” Raketech’s chief executive, Michael Holmberg, said. “We see many operators looking at Japan and this acquisition is an opportunity for Raketech to be part in an emerging market where our customers want to grow.
“We look forward to working together with the Casumba team to develop the products and in the long run launch new products together.”
Last month, Raketech reported a 6.1% year-on-year decrease in revenue for the second quarter of 2019, though reduced costs saw it significantly increase its profit for the period.
Revenue for the three months to 30 June amounted to €5.7m, down from €6.0m in the prior year, but operating profit was up 29.3% to €2.0m.