ReachHero is working closely with leading influencers such as Aaron Troschke (Hey Aaron), KindofRosy, Jarow and Luisa Crashion. With experience from more than 5,000 content and influencer campaigns already implemented, the company has an excellent customer portfolio including almost all industries and different types of agencies. The ReachHero acquisition is expected to lead to an additional revenue contribution in the mid single-digit million euro range at blockescence group level in 2019, which will be supported by synergies with the media and gaming companies Mediakraft und adspree. A positive EBITDA by ReachHero is expected for the current year.
The purchase price is in the mid single-digit million range plus earn out. The parties have agreed to not disclose the exact amount of the purchase price.
Total reach: 750 million subscribers
Via the ReachHero platform advertisers can easily access more than 340,000 profiles of influencers (Germany - Austria - Switzerland) with a total reach of 750 million subscribers through all relevant social media platforms. In combination with the unique marketplace function, the appropriate content partners for campaigns can be easily found and booked.. This facilitates on the one hand the access to influencers and artists from micro to macro audiences for brands and agencies and offers on the other hand emerging influencers an opportunity to introduce themselves to potential advertising partners. A large number of standardised campaign types from placement to performance campaigns, in combination with an efficient performance tracking and reporting, enables an effective ROI-oriented influencer marketing. This competence profile serves as a basis for the strong development of the platform on the German-speaking advertising market.
blockescence gains enormous know-how in the field of influencer marketing
"Apart from the customer portfolio and the successful influencers under contract, the platform solution permits us to rapidly and efficiently satisfy the constantly growing demand for micro and macro influencers. The mix of micro and macro influencers allows us to offer effective campaigns," comments Stefan Rascher, in charge of the advertising companies of the gamigo Group. With the acquisition "we gain, with the management of ReachHero GmbH enormous incremental know-how in the field of influencer marketing for the entire Group and strengthen our overall market position in combination with the Mediakraft and Adspree."
Founders and investors becoming blockescence shareholders
The purchase price payment is covered by shares of blockescence plc to be newly issued and a cash component. The number of shares will be issued in line with potential purchase price adjustments. The new shares will be subject to a lock-up period of six and twelve months, respectively. The final purchase price is based on the company's success. The founder-investors GFC Global Founders Capital, Axel Springer Plug and Play Accelerator and IBW Ventures and the founders of ReachHero will become shareholders of blockescence in the course of the acquisition. The founders will also maintain a stake in ReachHero and continue to manage the company. The closing of the transaction is expected within the coming weeks.
About blockescence plc:
blockescence is a strategic investment-holding, that focuses on a buy, build & sell strategy of fast-growing companies in consolidating TMT sectors. The blockescence portfolio companies are growing via acquisitions and organic growth and new technologies are actively used to create USP's and further efficiency within the portfolio companies. An example is the implementation and roll-out of distributed ledger technology (DLT or blockchain-technology) to create competitive advantages in the portfolio companies.
blockescence is based in Valletta (Malta), has subsidiaries in Switzerland and Germany and is listed on the Frankfurt Stock Exchange as well as on XETRA.
For further information, please contact:
Axel Mühlhaus / Dr. Sönke Knop
Tel. +49(0) 69/905505-52