Classifieds vertical search leader the Mitula Group Limited has acquired 100 per cent of the shares in Barcelona-based Nuroa Internet SL for approximately € 3.0 million.
Nuroa owns and operates 17 real estate vertical search sites in the United Kingdom, Germany, Austria, France, Italy, Ireland, Switzerland, the United States, Argentina, Brazil, Mexico, Chile, Australia, Peru, Colombia, Spain and Portugal.
The company enjoyed a record month in January, boasting 946 advertisers, 39.6 million monthly listings, 3.4 million monthly visits on the back of a 75 per cent organic search rate and 6.5 million click outs. Sold click outs were 2.5 million.
It is expected that Nuroa, in its existing format before integration synergies, will generate between AUD $1.2 million and AUD $1.4 million in revenues in CY 2016 at a 35-40 per cent EBITDA margin.
Mitula Group CEO Gonzalo del Pozo says Nuroa operates a similar model to the Mitula Group with revenues being derived from CPC (cost per click) and Google AdSense.
“The acquisition of Nuroa makes perfect sense for the Mitula Group,” del Pozo says.
“Not only is the operations based in Spain, making integration easier, but Nuroa sites perfectly align with the same markets in which we operate.
“This will enable us to strengthen our position in those markets and provide our customers with additional click outs.”
Former Nuroa CEO Olrio Blasco will continue on with the Mitula Group in a consulting capacity to help facilitate the integration of Nuroa into the Mitula Group business.
“The team is excited about joining the Mitula Group and being able to strengthen its network of sites,” Blasco says.
While the the vast majority of the consideration has been in cash and the assumption of Nuroa Internet debt, there will be a small allotment of 81,512 shares issued to some of the sellers.
The Mitula Group will continue to explore other acquisition opportunities.
The Mitula Group is a leading operator of 74 vertical search sites in 44 different countries across real estate, employment, motoring, and in some countries vacation rentals.
These sites are in 18 different languages and operate under either the Mitula and Nestoria brands.
Advertisers send listings to the Mitula Group and when a visitor to one of the Mitula Group sites clicks on one of these listings, they are redirected back to the source site, thus generating traffic for the advertiser.
The Mitula Group generates revenues from Google AdSense on its sites and from advertisers paying for additional clicks on a CPC (cost per click) basis.
The company was founded in 2009. It listed on the Australian Securities Exchange on 1 July 2015 and trades under the ticker code MUA.