Tradedoubler has announced the purchase of German ad tech firm Adnologies for an undisclosed fee.
The latter is an independent supplier of performance marketing services for publishers and agencies, with technology ranging from data exchanges, ad servers and both demand and supply-side platforms.
Tradedoubler claims the deal for Adnologies very much runs in tandem with the company's intention to enhance its existing tech arsenal, announced back in November 2014.
Founded in 2006, Adnologies generated €2.2 million in revenue last year but retains a low-key presence. Seven of its 15 employees are developers, some of whom are positioned at the company’s headquarters in Hamburg.
In 2013, Adnologies' ex-director, UK & International, Simon Mukerjee said the company had already began to branch out of Germany by running campaigns for advertisers in the US, Australia and Middle East. With offices in London, Madrid, Zurich, Paris, Rotterdam and Stockholm among others, the link-up with Tradedoubler could enable Mukerjee's former employers to expand further out of its German base.
Matthias Stadelmeyer, CEO of Tradedoubler, spoke of his elation after announcing that a deal had been struck.
“I am delighted to announce the acquisition of Adnologies,” he commented.
“Their product portfolio perfectly complements our own and therefore this is a further important step in the development of our recently announced corporate strategy that will see us become the leader in creating smarter results for our clients through traffic, technology and expertise.”
Staff follows tech
Tradedoubler will be hoping the technology boost given by Adnologies will help the company battle through what Stadelmeyer has already predicted to be a "challenging yet exciting journey". The tone for 2014 was well and truly set with the announcement that net sales had fallen by 12% in Q4 2013, down to £48 million.
In setting out a new long-term strategy last year
, the company pledged to develop its technology platform to track activity across all key digital marketing channels. Enhancements on this side of the business were backed to help clients gain more in-depth campaign data, with this helping them to improve their conversions.
Although this may not have an immediate impact on company finances, Tradedoubler said the technology would be brought up to scratch with the help of 25 new developers and within a timescale of three years. With seven pro developers from Adnologies now at its disposal, the company can start planning for the future.
In the meantime, part of the ongoing restructure at Tradedoubler has resulted in the decision to shift business from Norwegian clients over to the hands of staff in Stockholm, and to close the company's office in Oslo.
Stadelmeyer said this made sense given that most of the companies switching over were operating across the Nordic region.