Icecat takes over all shares in FMP Publishing A.B., the Swedish-based global aggregator and syndicator of professional and consumer product reviews, active under the name Testseek. Icecat buys out the current shareholders: founder Fredrik Engdahl and investor Netvalue BV.
Icecat and Testseek have
been working together for clients such as Intel since 2012, combining product
data and product reviews for the customers’ ecommerce and online marketing
environments. Reviews data affects the purchasing decision of consumers and
professional buyers. The subscriptions to Testseek product reviews are mainly
sold within the IT & Electronics industry. “But, we also see that
outside of this important ecommerce category, product reviews are hot, and therefore
we think that the Testseek service can quickly scale up to other
categories,” says Emre Tan, managing director Icecat.
“Testseek and Icecat
have been working together successfully for a long time,” says Fredrik
Engdahl, “and it was the most logical exit partner, also because a
significant part of the turnover was generated through the Icecat
activities of FMP Publishing will be transferred to Icecat after the
acquisition and will be fully integrated within the processes and systems of
Icecat. For at least a year Fredrik Engdahl will stay on as the CEO of the
The shares in FMP
Publishing will be acquired by Icecat Content Sourcing OÜ, the Estonian subsidiary
of Icecat NV. The acquisition will be fully funded from the positive annual
profit of Icecat, meaning that no negative effect on the cash reserves is
expected during 2019. Icecat will consolidate the financial results of the
activities in the course of 2019 within Icecat N.V. The expected impact on the
consolidated turnover is approximately + 1.5% to 2%, but of course dependent on
the further growth, and there will be a modest positive effect on the profit.
The integration costs are also expected to be modest, due to the already
existing multi-year cooperation.
Netvalue is via
investment company iMerge B.V. also participant and director of Icecat.
Managing director Emre Tan therefore acted in this transaction on behalf of
FMP Publishing was founded in December 2008 and initially operated a number of reviews portals. Due to changes in the search engine market, the business model shifted to offering subscriptions to aggregate review data for manufacturers and resellers, who then integrate this data into their own ecommerce environments. In 2013, Netvalue BV acquired a 50% share and bought out – except for Fredrik Engdahl – the other minority shareholders, who retained the other 50%.
Read further: Invest, News, Reviews, Icecat, reviews, testseek
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