Advantage Solutions Inc.

06/18/2024 | Press release | Distributed by Public on 06/18/2024 10:39

Advantage Solutions to sell Jun Group for $185 million

Advantage Solutions today said it has entered into an agreement to sell digital advertising platform Jun Group to Verve Group SE, a Swedish digital advertising company formerly known as Media and Games Invest SE.

Gross proceeds from the sale are expected to be approximately $185 million, the majority of which will be received in cash at closing. The transaction is expected to close in the third quarter, subject to regulatory and other approvals.

Advantage CEO Dave Peacock said the sale largely completes the company's business portfolio transformation, which was designed to sharpen the company's focus "squarely on providing best-in-class services to our retailer and CPG clients."

As part of the agreement, Verve will pay Advantage approximately $130 million in cash at close, plus two additional installments paid 12 and 18 months post-close to complete the deal.

Advantage said it plans to use the majority of initial proceeds to pay down debt and reinvest in its business. The company said it remains committed to reducing its net leverage ratio to less than 3.5 times.

"As we've demonstrated through other recent moves to simplify our business, we believe our clients and customers are best served when we focus on our core capabilities," said Advantage Chief Operating Officer of Branded Services Jack Pestello. The sale of Jun Group "allows us to reinvest in future-focused capabilities - from talent to technology - that will ensure our long-term, profitable growth."

Jun Group, which Advantage acquired in 2018, is a technology company that powers digital media campaigns on digital platforms, including smartphones, tablets and desktop computers.

While Jun Group provides some services to retailers and consumer-packaged goods companies, many of its customers - including publishers and healthcare companies - are distinct from Advantage's core customer base.

"Over the last year and a half, we've simplified our portfolio around our core capabilities, and we are building the foundation for growth," Peacock said.

The transaction follows a series of divestitures over the last year, including the recent sales of Strong Analytics, The Data Council, Adlucent, Atlas Technology Group and Advantage's collection of foodservice businesses.

Advantage said it will continue to evaluate its portfolio and seek opportunities to further augment its capabilities.