Struggling Swedish yellow pages company, Eniro acquires 118 800Thursday, 27 October 2011
Eniro, the leading Swedish search engine company is to acquire the directory enquiry company, 118 800, and thus strengthen its position in the Swedish market for personal search engines.
According to a press release from the company, it reports that it signed an agreement to acquire the directory enquiry company, 118 800, with associated brands, telephone numbers and other intellectual property rights.
AdvertisementThe purchase consideration totals Skr 20 million in cash on completion of the transaction, while the remaining remuneration, maximum SEK 30 million, will be based on the company’s performance in the coming two years.
118 800 is profiled as the low-cost alternative among Swedish directory services and sales in 2010 amounted to approximately Skr 70 million, with an EBITDA of slightly more than Skr 19 million. The operation will be consolidated with Eniro’s Voice business area during the first quarter 2012. The acquisition is conditional upon approval from the Swedish Competition Authority.
In a market plagued by declining call volumes, the acquisition is anticipated to contribute to stabilizing revenues from Eniro’s Swedish directory services.
“118 800 has successful positioning and is aimed at a younger user group. We will continue to maintain two, different directory services, which will complement each other in the Swedish market and strengthen our total offering,” says Mattias Wedar, CEO Eniro Sweden.
By Scancomark.se Team
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