Digiteka, a video marketplace and advertising firm, has been acquired by a joint venture between Belgian publisher Rossel and French publisher SIPA Ouest-France, as part of a strategic move to capitalize on the growing demand for video content.

Target Company Overview

Digiteka, a Belgian-based advertising management and video marketplace company, has reported annual revenues of €6 million. Previously owned by A Plus Finance, Siparex, and Calao, the company has undergone a significant ownership transition. Following over six years of investment and management by these groups, a decision was made to sell Digiteka. The sale process, handled by Raphaël Financial Advisory, concluded with exclusive negotiations leading to its acquisition by a joint venture between Belgian publisher Rossel and French publisher SIPA Ouest-France. The new entity formed for this purpose is called Digiteka Technologies.

Under the new agreement, all previous shareholders will relinquish their stakes, although the management team, led by founder Charles Ganem, has the option to reacquire a 20% interest contingent on meeting specific performance targets. Since its founding a decade ago, Digiteka has transitioned from a marketplace primarily for music videos to a more diversified business model, evolving its technology to automatically contextualize videos for website pages, ultimately enhancing its revenue streams from advertising.

Industry Overview in France

The video advertising industry in France has seen substantial growth over the past few years, driven by a shift in consumer behavior towards online video content. The market has become increasingly competitive, with