Digital media firm Aleph Holding said it sold a stake in private equity firm CVC Capital Partners for $ 470 million, valuing the company at $ 2 billion. The company is preparing for an IPO as early as 2022, according to people familiar with the matter.
Aleph generates revenue by helping businesses and social media companies including Facebook Inc., Twitter Inc.,
and Snap Inc.,
work together in geographic areas primarily outside of the United States and Europe. It has been profitable for several years and was not looking for new capital to finance its growth. Instead, this fundraiser will allow existing employees and shareholders, including founder and CEO GastÃ³n Taratuta, to sell shares.
In an interview, Mr. Taratuta said he spoke with several private equity investors, but was more interested in CVC CVC 2.05%
because of its global footprint.
âI wanted an investor who understands global economies and with global exposure,â Taratuta said of CVC. He said about 90% of Aleph’s income is generated outside of the United States.
Aleph plans to continue expanding its offerings in developing countries through acquisitions ahead of an IPO, Taratuta said.
Aleph is on track to more than double its annual revenue in 2021 to around $ 150 million, company executives said, and gross advertising sales are expected to reach $ 1 billion in 2021.
Imran Khan, former Snap Strategy Director and CEO and co-founder of online e-commerce platform Verishop Inc., recently joined Aleph as Chairman of the Board. Mr. Khan worked with Mr. Taratuta and Aleph during his time at Snap.
Mr. Khan is known for his work on IPOs. He led Snap through its 2017 offering and before that as a banker at Credit Suisse Group AG
, helped the bank land a key role in biggest IPO ever â Alibaba Group Holding Ltd.
Aleph, which is based in Miami, is the latest version of a company known as IMS Internet Media Services and founded by Mr. Taratuta in 2005. In 2015, the company sold a 51% stake to Sony Pictures Television, a division of the Sony group Corp.
, for about $ 100 million. Mr. Taratuta and his partners bought part of this stake in 2019. Sony remains a minority shareholder.
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