Further expansion of the Group’s new growth segment
Yesterday Ströer signed the purchase agreement to acquire the Ranger Group, one of Germany’s largest dialog marketing specialists. The main shareholder Waterland and co-investors are thus selling all shares in Ströer. Ranger is to be integrated into the organization of Ströer’s new dialog marketing group.
The acquisition of the Ranger Group that operates in performance-based dialog sales creates an additional channel alongside the Avedo Group’s performance marketing business. This enables the Ströer Group to offer its own customers integrated, end-to-end solutions along the entire marketing and sales value chain.
Ströer expects the acquisition to result in an additional revenue contribution (before synergies) of approximately EUR 70m p.a. and a consolidated, normalized EBITDA contribution of more than EUR 10m. Earnings per Ströer share (before synergies) will increase by approximately 3%.
Ranger is a direct sales specialist providing highly efficient, performance-guided sales services on behalf of its clients. The company sells products to private and corporate customers on behalf of its clients in the telecommunications, energy, retail, financial services and media sectors. Ranger has operations throughout Germany, its primary market. Total sales force comprises to approximately 1,500 people at some 100 locations. Further significant growth is expected for the next fiscal year. The Ranger Group’s management team comprising founder Frank Rittmann and CEO Tobias Mehrer will stay on board and, once the deal is closed, will report to Torsten Krause, CEO of Ströer’s new dialog marketing segment.
“Acquiring the Ranger Group will add an important new channel to our business: professional direct sales. In the future, we intend to expand our sales organization with its current primary focus on B2C to include sales to corporate customers in the B2B segment as well. As with our telemarketing activities, we will be able to manage all sales teams on a CPO (cost per order) basis, which gives us clear performance advantages,” says Torsten Krause, CEO of Ströer’s new dialog marketing segment. “Moreover, we will combine telephone sales with direct sales, which will improve efficiency and effectiveness even further.”
The transaction will be executed subject to approval by the German Federal Cartel Office (Bundeskartellamt) and other customary closing conditions. The transaction is expected to be closed in the third quarter of 2017.
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