Ringier and KKR: Long-term cooperation
Ringier and investor KKR will jointly continue to develop Ringier's Swiss digital businesses in the classifieds and marketing sectors. KKR is acquiring a 49 percent stake in each of Ringier Digital's subsidiaries, Scout24 Switzerland and Omnimedia.
The online marketplaces for vehicles (Autoscout24.ch, Motoscout24.ch) and real estate (Immoscout24.ch) as well as the classifieds platform Anibis.ch are united under the umbrella of Scout24 Switzerland.
Marc Walder, Chief Executive Officer Ringier, in a press release: "As a family-owned company, we select our partners with great care. We are proud to join forces with KKR, one of the world's leading investment companies with extensive experience in the media and technology sectors, to drive forward the development of our digital business. Ringier already generates 30 percent of its revenues in this way. The aim is to achieve 50 percent digital revenue in three to four years." Walder will become Chairman of the Board of Directors of Scout24 Switzerland.
Philipp Freise, Partner and Head of the European Media & Digital Investment Team at KKR: "This investment is all about bringing our entrepreneurial capital to the partnership with Ringier. We see significant potential in Scout24 Switzerland and Omnimedia. Both have a strong national position in the attractive Swiss market. We look forward to realizing the full potential of these high-quality companies together with Ringier. The companies will have access to KKR's global network of advisors and investment professionals specializing in technology."
KKR has extensive experience in the digital media sector. Recent investments in this area include BMG Rights Management (joint venture with Bertelsmann), Fotolia, ProSiebenSat.1, Go Daddy, Internet Brands and Mitchell International. The owner-managed investor has worked successfully with many leading family businesses, both in minority and majority stakes. KKR uses its international network and financial expertise to support its partners in strategic and operational matters. The funds for the investment in Scout24 Switzerland and Omnimedia come from KKR's third European private equity fund.
According to the press release, the collaboration aims to further expand the already very good market position of the two companies in the coming years. In an international comparison, the Swiss online sector has considerable growth potential. While the proportion of online advertising in the overall advertising mix is very low, broadband and mobile Internet are used intensively. At the same time, Switzerland has a strong purchasing power and an innovation-oriented economy. The combination of these factors forms the foundation for Ringier's growth strategy in the digital sector. The transaction is subject to the usual regulatory approvals. The financial details are not being communicated.
