CLEARWATER, Fla.–(BUSINESS WIRE)–$DMS #digitaladvertising—Digital Media Solutions, Inc. (NYSE: DMS), a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers within auto, home, health and life insurance plus a long list of top consumer verticals, today announced that it has entered into an agreement to acquire the HomeQuote.io home services marketplace from Customer Direct Group, along with the supporting media and technology assets of the ClickDealer international ad network.
Setting high standards in online marketing services, ClickDealer is a recognized industry expert, ranked as one of the best by Performance Insider and mThink Blue Book. The acquisition, once completed, will allow DMS to continue the expansion of its marketplace solutions into home services in the U.S. market, while also strengthening its brand direct business through international expansion.
“With this acquisition, we will be executing on our key strategic growth initiatives. We will be expanding our marketplace solutions to now include home services, a vertical which we believe will perform well in a down market as homeowners turn to renovating their homes as opposed to buying new homes. We will also be expanding our brand direct business internationally. Through the acquisition, we will be continuing to invest and expand in key verticals and end markets,” stated Joe Marinucci, CEO of DMS.
The market for home improvement and other home services is substantial. According to Q4 2022 data recently released by the Joint Center For Housing Studies, continued growth is expected for home remodeling and repairs in 2023, with spending for homeowner improvements projected to reach $485 billion. Costs for mid- to large-scale home improvement projects typically range from thousands to tens of thousands of dollars. The process consumers use to identify and select a qualified product and service provider can be complicated and time-consuming for homeowners. Conversely, reaching and communicating with homeowners can be difficult and expensive for providers. Home services marketplaces like HomeQuote.io create connections between the homeowner who is gathering multiple bids and offers to compare job pricing, while simultaneously helping contractors expand their reach within their local markets. This will be a value additive process.
The HomeQuote.io marketplace operates in high-value end markets such as roofing, windows and doors, bathrooms, kitchens, siding and gutters. The marketplace service will provide homeowners with access to thousands of contractors across the country.
Additionally, DMS will now have access to diversified international media distribution and advertisers that will expand the current brand direct business that DMS operates domestically into over a dozen countries around the world. This will allow DMS to serve international advertisers in verticals like ecommerce, cyber security, retail, consumer finance and gaming.
The consideration paid for the acquisition at closing will be $35 million. Performance in the two years following closing could result in up to $10 million of additional contingent consideration being paid. The acquisition, once completed, is expected to add $70 – $80 million to DMS FY2023 revenue and is expected to be accretive to DMS FY2023 earnings.
More details on the transaction will be shared in the DMS 2022 Q4 and FY 2022 earnings call in March 2023, and in subsequent reports filed with the Securities and Exchange Commission. Completion of the transaction is subject to certain closing conditions, the satisfaction or waiver of which is necessary for the transaction to be consummated.
About Digital Media Solutions
Digital Media Solutions, Inc. (NYSE: DMS) is a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers within auto, home, health and life insurance plus a long list of top consumer verticals. The DMS first-party data asset, proprietary advertising technology, significant proprietary media distribution and data-driven processes help digital advertising clients de-risk their advertising spend while scaling their customer bases. Learn more at https://digitalmediasolutions.com.
This press release includes “forward-looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and are made in reliance upon such acts and the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. DMS’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. These forward statements are often identified by words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions. These forward-looking statements include, without limitation, DMS’s expectations with respect to its and ClickDealer’s future performance and its ability to implement its strategy and are based on the beliefs and expectations of our management team from the information available at the time such statements are made. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside DMS’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the actual consummation of the ClickDealer transaction and the risk that such consummation may not occur due to the failure of one or more closing conditions, (2) DMS’s ability to attain the expected financial benefits from the ClickDealer transaction, (3) any impacts from the transaction to the ClickDealer business, (4) the COVID-19 pandemic or other public health crises; (5) changes in client demand for our services and our ability to adapt to such changes; (6) the entry of new competitors in the market; (7) the ability to maintain and attract consumers and advertisers in the face of changing economic or competitive conditions; (8) the ability to maintain, grow and protect the data DMS obtains from consumers and advertisers, and to ensure compliance with data privacy regulations in newly entered markets; (9) the performance of DMS’s technology infrastructure; (10) the ability to protect DMS’s intellectual property rights; (11) the ability to successfully source, complete and integrate acquisitions; (12) the ability to improve and maintain adequate internal controls over financial and management systems, and remediate material weaknesses therein, including any integration of the ClickDealer business; (13) changes in applicable laws or regulations and the ability to maintain compliance; (14) our substantial levels of indebtedness; (15) volatility in the trading price on the NYSE of our common stock and warrants; (16) fluctuations in value of our private placement warrants; and (17) other risks and uncertainties indicated from time to time in DMS’s filings with the SEC, including those under “Risk Factors” in DMS’s Annual Report on Form 10-K and its subsequent filings with the SEC. There may be additional risks that we consider immaterial or which are unknown, and it is not possible to predict or identify all such risks. DMS cautions that the foregoing list of factors is not exclusive. DMS cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. DMS does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
For inquiries related to media, contact firstname.lastname@example.org