Verve Group SE Acquires Jun Group, Strengthening Growth and Revenue Synergies

Verve Group SE has signed an agreement to fully acquire Jun Group, a leader in mobile advertising technology. This acquisition aims to boost sales and earnings, enhancing Verve's demand-side business significantly. Previously, demand-side contributed 10% to Verve's business; post-acquisition, this figure rises to 30%.

Jun Group's diverse client base, including Amazon and McDonald's, will integrate well with Verve's platform. The acquisition is projected to add 23% to Verve's revenue and 43% to adjusted operating profit, elevating expected Group revenue to €447 million and adjusted EBITDA to €151 million for FY 2024.

The purchase, totaling €170 million, is financed using existing funds and a recent capital increase. Future financing costs may reduce due to stronger cash EBITDA and improved debt ratios. Verve anticipates sales synergies between €30 million and €40 million in the medium term.

Given the acquisition’s synergy potential and Verve's increased financial targets, GBC AG has set a new price target of €6.00 per share, maintaining a 'BUY' recommendation. The acquisition is seen as a strategic move to enhance Verve’s profitability and market position.