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Intl company acquires local media sales company, Ad Dynamo

South African media sales business, Ad Dynamo, the exclusive media sales partner for Twitter, Snap, Spotify and other platforms across sub-Saharan Africa, has been acquired by the Aleph Group Inc, global partner to some of the world's biggest digital media players.
Source: © nopporn suntornpasert
Source: © nopporn suntornpasert 123rf

The move will accelerate Ad Dynamo into its next phase of growth -- scaling its services to more platforms and more countries across the African continent.

The transaction excludes Blue Robot, AdDynamo’s digital messaging and marketing technology solution.

Terms of the transaction, which closed in December 2021, were not disclosed but are understood to be significant in the South African context.

The Ad Dynamo management team is unchanged and will continue to lead the business.

Digital media sales in Africa

Based in Cape Town, South Africa, Ad Dynamo company has an extensive presence across Africa as well as in Ireland. With the African continent’s young, increasingly digitally connected population and fast-growing economies, Ad Dynamo is well-positioned for strong growth over the coming decade.

“Ad Dynamo has built a proven sales engine for global platforms across the continent, with revenue more than tripling over the past four years. Aleph's acquisition of Ad Dynamo solidifies our position as the leader in digital media sales across Africa and opens up new opportunities for growth.

“We have been fortunate to get to know Gastón and the Aleph team over the years and there is very much a shared vision and common culture shared by the businesses. We are delighted to join the Aleph family," says Sean Riley, founder and CEO of Ad Dynamo.

High value in expanding in Africa

The transaction allows Aleph to expand into the fast-growing African digital advertising market, with Aleph confident that adding Ad Dynamo to its portfolio will cement its global footprint and growth trajectory.

Gastón Taratuta, Founder and CEO of Aleph says: "There is huge value in expanding throughout Africa, both to serve our current partners and clients and to expand on existing relationships in other parts of the world.”

“We have been following Ad Dynamo's growth and geographical expansion over the last five years and I am excited to welcome them to the Aleph family. I admire Sean and the entire Ad Dynamo team, and look forward to working together to make this a successful partnership.”

Next generation of entrepreneurs

This acquisition was announced by Invenfin, the venture and growth capital division of South African investment group Remgro Limited. Invenfin typically invests in the technology and consumer sectors, helping to build world-class businesses and scale them globallly.

“We are very grateful for Invenfin’s strong support and partnership, which has been critical to the success of Ad Dynamo, and we hope this successful exit inspires the next generation of entrepreneurs throughout the African start-up ecosystem,” says Riley.

Stuart Gast, CEO of Invenfin says: "This is a milestone deal for Invenfin, both because Ad Dynamo was our first ever investment over 10 years ago, and because the transaction is material and generates strong financial returns for all Ad Dynamo’s shareholders.

“This exit proves our investment model of actively partnering with management and other shareholders, to grow through the very tough scale up phase. We look to back high-growth companies with global potential, and Ad Dynamo has been a successful investment."

"We believe Aleph is the perfect global partner for Sean and his Ad Dynamo team to build an even bigger success story in Africa,” says Gast.

“I am very proud to announce this deal, as a South African-founded company being sold to an international business does not happen every day. This is great news for our economy and validates the fast-growing local tech ecosystem," he adds.

The acquisition of Ad Dynamo follows CVC’s $470m investment in Aleph announced in 2021.

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