Advantage Solutions completes sale of Jun Group
Advantage Solutions Inc. (NASDAQ: ADV) has completed the sale of its digital advertising platform Jun Group to Verve Group SE for approximately $185 million. The company received $130 million in cash at closing, with two additional installments expected over the next 18 months. Advantage plans to use the majority of the initial proceeds to pay down debt and reinvest in the business. The company aims to reduce its net leverage ratio to less than 3.5 times over the long term. CEO Dave Peacock stated that this sale represents a significant step in simplifying Advantage's business portfolio and enabling strategic investments for growth while reducing debt.
Advantage Solutions Inc. (NASDAQ: ADV) ha completato la vendita della sua piattaforma di pubblicità digitale Jun Group a Verve Group SE per circa 185 milioni di dollari. L'azienda ha ricevuto 130 milioni di dollari in contanti al momento della chiusura, con due ulteriori rate previste nei prossimi 18 mesi. Advantage prevede di utilizzare la maggior parte del ricavato iniziale per restituire debito e riedificare l'attività. L'azienda mira a ridurre il proprio rapporto di leva finanziaria netto a meno di 3,5 volte nel lungo termine. Il CEO Dave Peacock ha dichiarato che questa vendita rappresenta un passo significativo per semplificare il portafoglio aziendale di Advantage e consentire investimenti strategici per la crescita riducendo al contempo il debito.
Advantage Solutions Inc. (NASDAQ: ADV) ha completado la venta de su plataforma de publicidad digital Jun Group a Verve Group SE por aproximadamente 185 millones de dólares. La compañía recibió 130 millones de dólares en efectivo al cierre, con dos pagos adicionales esperados en los próximos 18 meses. Advantage planea utilizar la mayoría de los ingresos iniciales para reducir deuda y reinvertir en el negocio. La compañía tiene como objetivo reducir su relación de apalancamiento neto a menos de 3.5 veces a largo plazo. El CEO Dave Peacock declaró que esta venta representa un paso significativo en simplificar la cartera empresarial de Advantage y permitir inversiones estratégicas para el crecimiento mientras se reduce la deuda.
Advantage Solutions Inc. (NASDAQ: ADV)는 디지털 광고 플랫폼 Jun Group을 Verve Group SE에 약 1억 8500만 달러에 판매를 완료했습니다. 회사는 거래 완료 시 1억 3000만 달러의 현금을 확보했으며, 향후 18개월 동안 두 차례 추가 분할 상환이 예상됩니다. Advantage는 초기 수익의 대부분을 부채 상환 및 비즈니스 재투자에 사용할 계획입니다. 회사는 장기적으로 순 금융 레버리지 비율을 3.5배 미만으로 줄이는 것을 목표로 하고 있습니다. CEO Dave Peacock은 이번 판매가 Advantage의 사업 포트폴리오를 단순화하고 성장하기 위한 전략적 투자를 가능하게 하며 부채를 줄이는 중요한 단계라고 밝혔습니다.
Advantage Solutions Inc. (NASDAQ: ADV) a achevé la vente de sa plateforme de publicité numérique Jun Group à Verve Group SE pour environ 185 millions de dollars. L'entreprise a reçu 130 millions de dollars en espèces lors de la clôture, avec deux paiements supplémentaires prévus au cours des 18 prochains mois. Advantage prévoit d'utiliser la majorité des revenus initiaux pour rembourser des dettes et réinvestir dans l'entreprise. L'entreprise vise à réduire son ratio d'endettement net à moins de 3,5 fois à long terme. Le PDG Dave Peacock a déclaré que cette vente représente une étape importante pour simplifier le portefeuille commercial d'Advantage et permettre des investissements stratégiques pour la croissance tout en réduisant la dette.
Advantage Solutions Inc. (NASDAQ: ADV) hat den Verkauf seiner digitalen Werbeplattform Jun Group an die Verve Group SE für etwa 185 Millionen Dollar abgeschlossen. Das Unternehmen erhielt 130 Millionen Dollar in bar beim Abschluss, mit zwei weiteren Raten, die in den nächsten 18 Monaten erwartet werden. Advantage plant, den Großteil der anfänglichen Einnahmen zu verwenden, um Schulden abzubauen und in das Geschäft zu reinvestieren. Das Unternehmen strebt an, das Netto-Verschuldungsverhältnis auf weniger als 3,5 Mal langfristig zu senken. CEO Dave Peacock erklärte, dass dieser Verkauf einen bedeutenden Schritt zur Vereinfachung des Geschäftsportfolios von Advantage darstellt und strategische Investitionen für Wachstum ermöglicht, während gleichzeitig die Schulden reduziert werden.
- Received $130 million in cash from the sale of Jun Group
- Total gross proceeds of approximately $185 million expected
- Plans to use majority of proceeds to pay down debt
- Aims to reduce net leverage ratio to less than 3.5 times
- Completes business portfolio simplification
- Divestiture of a digital advertising platform may impact future revenue streams
Insights
The sale of Jun Group by Advantage Solutions (NASDAQ: ADV) for
- Debt Reduction: With
$130 million received upfront, Advantage's plan to use the majority for debt repayment is a prudent financial decision. This aligns with their stated goal of reducing the net leverage ratio to below3.5% , which could improve their financial health and credit profile. - Strategic Refocus: By divesting Jun Group, a digital advertising platform, Advantage is streamlining its business portfolio. This move allows the company to concentrate on its core competencies in providing services to retailers and CPG clients, potentially leading to improved operational efficiency and profitability.
- Phased Payment Structure: The additional two installments scheduled at 12 and 18 months post-close provide Advantage with future cash inflows. This structure could offer financial flexibility and support ongoing strategic initiatives.
- Market Reaction: Investors should monitor the stock's performance following this announcement. The market often responds positively to debt reduction efforts and strategic focus, which could potentially boost shareholder value.
While the sale appears positive for Advantage's financial position and strategic direction, it's important to consider the potential loss of revenue and growth opportunities from Jun Group. Investors should keep an eye on how Advantage redeploys the proceeds and executes its refocused strategy in the coming quarters.
The sale of Jun Group by Advantage Solutions to Verve Group SE marks a significant shift in the digital advertising landscape. Let's break down the implications:
- Industry Consolidation: This transaction reflects the ongoing consolidation in the ad-tech sector. As larger players seek to expand their capabilities and market share, we're likely to see more such acquisitions.
- Competitive Dynamics: Verve Group, by acquiring Jun Group, is strengthening its position in the digital advertising market. This could potentially alter the competitive landscape, putting pressure on other mid-sized players to seek strategic partnerships or consider M&A activities.
- Market Trends: The
$185 million valuation of Jun Group provides a benchmark for similar ad-tech platforms. It suggests that there's still significant value in specialized digital advertising capabilities, despite challenges like privacy regulations and the phasing out of third-party cookies. - Strategic Priorities: Advantage's decision to divest Jun Group indicates a shift away from direct involvement in digital advertising technology. This move aligns with a broader trend of companies focusing on their core competencies and divesting non-core assets.
For investors, this transaction underscores the importance of staying attuned to strategic shifts in the rapidly evolving digital advertising ecosystem. It also highlights the potential for value creation through strategic divestitures and the ongoing appetite for ad-tech acquisitions among larger players seeking to enhance their technological capabilities.
ST. LOUIS, July 31, 2024 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ: ADV), a leading business solutions provider to consumer goods manufacturers and retailers, today announced it has completed the sale of digital advertising platform Jun Group to Verve Group SE, a Swedish digital advertising company formerly known as Media and Games Invest SE.
Gross proceeds from the sale, which was announced in June, are approximately
Advantage received approximately
Advantage plans to use the majority of initial proceeds to pay down debt and reinvest in the business. The company remains committed to reducing its net leverage ratio over the long-term to less than 3.5 times.
“The sale of Jun Group represents another significant step that will enable Advantage to sharpen our focus on providing industry leading services to our retailer and CPG clients,” said Dave Peacock, CEO of Advantage Solutions. “This largely completes our business portfolio simplification, enabling us to invest strategically into growth while reducing our debt.”
About Advantage Solutions
Advantage Solutions is a leading provider of outsourced sales, experiential and marketing solutions uniquely positioned at the intersection of brands and retailers. Our data- and technology-driven services — which include headquarter sales, retail merchandising, in-store and online sampling, digital commerce, omnichannel marketing, retail media and others — help brands and retailers of all sizes get products into the hands of consumers, wherever they shop. As a trusted partner and problem solver, we help our clients sell more while spending less. Advantage has offices throughout North America and strategic investments in select markets throughout Africa, Asia, Australia, Latin America and Europe through which the company serves the global needs of multinational, regional and local manufacturers. For more information, please visit advantagesolutions.net.
Media:
Peter Frost
press@advantagesolutions.net
Investors:
Ruben Mella
investorrelations@advantagesolutions.net
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