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Ringier acquires the shares of Axel Springer in Hungary, Serbia, Slovakia, Estonia, Latvia and Lithuania
Since Ringier Axel Springer Media AG was formed in July 2010, the joint venture between Ringier AG and Axel Springer SE has resulted in one of the largest and most modern media companies in Central and Eastern Europe, with some 3,100 employees. The comprehensive portfolio includes more than 200 digital and print products. In the first half of 2021, digital activities accounted for approximately 85 percent of adjusted EBITDA.
Ringier is continuing its transformation into an international and diversified media company
With the acquisition of the shares of Axel Springer in the joint venture in Hungary, Serbia, Slovakia, Estonia, Latvia and Lithuania, Ringier is continuing its international growth and investment strategy in the field of digital marketplaces and media brands. Thanks to these significant investments, Ringier is strengthening its current activities in Romania and Bulgaria.
Marc Walder, CEO of Ringier AG: «The acquisition of the Axel Springer shares in Hungary, Serbia, Slovakia and the Baltic states is an important milestone in our business development. This transaction is an acknowledgement of our long-term commitment to being a modern media investor in Eastern Europe. The portfolio in these countries suits us ideally and will further strengthen the Ringer ecosystem. In addition, Serbia, Slovakia and Hungary serve as a good basis for expanding our digital sports media strategy. I am pleased that we will be able to further advance our media and digital marketplaces in Poland with Axel Springer. We will work together to continue to make investments in this large and exciting market.»
Axel Springer sets priorities as part of the growth strategy
Axel Springer will continue to focus on its long-term growth strategy. The company is aiming to become a global leader in digital journalism and digital classifieds. In addition to substantial investments in growth fields, this will also require a clear focus on large and strategic core markets. In the News Media segment, central to this is the already highly digitized portfolio in Germany, the USA and Poland.
Jan Bayer, President News Media at Axel Springer SE: «Over the past 11 years, we have worked with Ringier to build Ringier Axel Springer Media AG into one of the most successful companies in Central and Eastern Europe, with strong news brands and successful digital classifieds. As part of our growth strategy, we will focus on our strategic core areas and large markets. This includes Poland with 40 million people. For them, we will further digitalize and expand our journalistic offerings and classifieds together
with Ringier. I would like to sincerely thank our colleagues in Hungary, Slovakia, Serbia, Estonia, Latvia and Lithuania, and everyone at Ringier for the very good collaboration over the past few years.»
Continuation of the joint venture in Poland
As joint venture partners, Axel Springer and Ringier will focus their future efforts in Eastern Europe exclusively on the Polish market. The partners have been operating media brands with strong revenue and EBITDA there for many years. The continuity of the management of the joint venture is assured with Mark Dekan as CEO.
«When we started the joint venture in 2010 with what was almost entirely a print portfolio (97 percent of revenue), we had the vision of transforming the local print brands into strong digital players in their future media markets. We now generate about 70 percent of sales and 85 percent of earnings from our digital offerings. Together, we have not only brought the existing media brands into the digital age, but we have also created new leading digital media and classified brands that are now among the most relevant offerings in their markets. I would like to thank all of our colleagues in Slovakia, Hungary, Serbia and the Baltic states for their commitment, their passion and their willingness to always go the extra mile. At the same time, I look forward to continuing to expand our activities in the largest market in the region with the Polish team and the joint venture partners», says Mark Dekan, CEO of Ringier Axel Springer Media AG and CEO of the joint venture in Poland.
Axel Springer included its subsidiaries in Poland, the Czech Republic and Hungary in the joint venture Ringier Axel Springer Media AG, which was founded in July 2010. Ringier added its business in Serbia, Slovakia, the Czech Republic and Hungary.
Finalisation of the acquisition
The acquisition of the shares should be completed over the course of 2021. Completion of the transaction requires the approval of the competent local antitrust authorities. Both parties have agreed to keep the sale price and the valuation of the parts of the companies being acquired confidential.
Ringier AG is an innovative, digitalised and diversified Swiss media company operating in Europe, Asia and Africa. Its portfolio includes around 110 subsidiaries in the print, digital media, radio, ticketing, entertainment and e-commerce sectors and leading online marketplaces for cars, property and jobs. As a venture capital provider, Ringier supports innovative digital start-ups. Ringier, a family company founded in 1833 as a publishing house and printing plant, has invested consistently in digitalisation and global expansion in recent years. In 2020, the company’s some 6.800 employees, operating in 18 different countries, generated revenues of 953.7 million CHF. Today, 69 per cent of its operating profit already comes from digital, where Ringier is a leader among European media companies. Ringier’s core values are independence, freedom of expression and a pioneering spirit.
About Axel Springer
Axel Springer is a media and technology company and active in more than 40 countries. By providing information across its diverse media brands (amongst others BILD, WELT, INSIDER, POLITICO Europe) and classified portals (StepStone Group and AVIV Group), Axel Springer SE empowers people to make free decisions for their lives. Today, the transformation from a traditional print media company to Europe’s leading digital publisher has been successfully accomplished. The next goal has been set: Axel Springer aims to become global market leader in digital content and digital classifieds through accelerated growth. The company is headquartered in Berlin and employs more than 16,000 people worldwide.