Catena Media acquires US-based premium equity service The Hammerstone
Catena Media plc, the industry leader in lead generation, is acquiring the assets of Hammerstone Inc. through a share purchase. The Hammerstone.com is a US-focused premium content publisher in financial services providing stock analysis services.
Hammerstone is a premium subscription stock analysis service and will be used to deliver quality content to retail traders on various platforms in the Catena Financial Services eco-system. Through its deep knowledge of the financial industry, Hammerstone, and its website thehammerstone.com, has built up a financial media product that allows its subscribers to obtain real-time news and analytics giving them the edge on various stocks.
The focus on integrating Hammerstone into Catena Financial Services will be a key part in building a global equities information platform and a key part in extending Catena Media into new key product areas, which, in addition to traditional affiliate-revenues, will now include subscription-based revenues. The new areas are equities trading, FX trading and personal finance, and the acquisition provides a product that is fundamental to the trading sector strategy.
Hammerstone was started in 2002 and is now based in Connecticut, USA. It is an instant messaging-based platform that provides subscribers with immediate notifications of market-driving news. The acquired assets currently generate quarterly sales of about USD 450,000.
“The potential of this vertical, and for Hammerstone, is immense and will contribute to establishing our strong vision of positioning ourselves within the US finance services vertical and extending this globally.”
Per Hellberg, CEO
The initial purchase price, payable in conjunction with the transfer of the assets, amounts to an upfront payment of USD 5.0 million of which USD 2.0 million can be paid with newly issued shares in Catena Media at prevailing market rates and the remainder in cash. In addition, there is an earn-out of a maximum USD 2.5 million based on revenue performance over a period of 12 months, with 40 percent of the earn-out being payable in shares.
The shares will be issued at a subscription price of SEK 137.32 per share, corresponding to the volume-weighted average price for Catena Media’s shares on Nasdaq Stockholm over a period of 30 trading days up to and including 8 June, 2018. This means that a total of 127,440 shares will be issued, corresponding to approximately 0.23 percent of the shares and votes in the company. The shares will be subject to a lock-up period of 12 months as of the closing date of the transaction.