Dutch-based Azerion lists on Euronext Amsterdam after SPAC deal; valued at over €1.64B

Azerion Group NV, a digital entertainment and media company, is now publicly listed in Amsterdam. After its acquisition by a special purpose acquisition company (SPAC) called EFIC1 was completed, the company founded by two Dutch entrepreneurs started trading on Euronext under the symbol “AZRN”.

Azerion Holding BV and European FinTech IPO Company 1 BV (“EFIC1”) completed their business combination on February 1, 2022, with more than 95 per cent of the votes cast in its support. The Euronext-listed European FinTech IPO Company 1 had first expressed its intent to merge with Schiphol-Rijk-based Azerion Holding BV in December.

Azerion Group NV starts trading on Euronext

After WeTransfer parent WeRock cancelled its planned listing on Euronext, the SPAC deal for Azerion going ahead should bring a renewed interest in dealmaking. EFIC1 had announced that it will buy 100 per cent of the issued and outstanding share capital of Azerion and valued the company at up to €1.39B.

However, the first day of trading was not as smooth sailing as the newly formed Azerion Group NV would have hoped. Reuters reports that the shares in the new entity traded 4.4 per cent lower at €9.12 per share. The share price does translate to market value of €1.64B, which is higher than the valuation initially recommended by the SPAC.

Atilla Aytekin, co-founder and co-CEO of Azerion, says, “Today marks an important step for Azerion, and we are excited to finally enter the public markets and continue to grow and advance our platform whilst raising our profile amongst our customer and partner groups and talented workforce globally. We are proud to achieve this important milestone, and we look forward to our next growth phase and future as a public company. I am grateful to the entire Azerion team for all their hard work, which has brought us to this pivotal moment, and for the dedicated support of our partner EFIC1.”

“The journey of our SPAC EFIC1 comes to a successful end while the exciting journey of Azerion as a listed company starts now. The whole EFIC1 team thanks its shareholders for their support. We look forward to continuing our partnership with Azerion over the long term and wish the company, its founders, employees and shareholders success as they continue their impressive growth story,” says Martin Blessing, former Chief Executive Officer of EFIC1.

Azerion Group NV: a look into the new business combination

In an exchange filing, Azerion Group NV says that the business combination resulted in up to €93M of gross total primary cash proceeds, including up to €70M of funds from the EFIC1 escrow account. The gross total primary cash is complemented by a sponsor and co-investor commitment of €23.15M.

The completion of the business combination saw Azerion Group receive up to €56M of net primary cash proceeds, which is net of transaction costs and expenses. Azerion plans to use this cash to pursue acquisitions that will add value to its business. Earlier, the SPAC had confirmed that Azerion and its shareholders will receive gross total cash proceeds of up to €405M including the sponsor and co-investor commitment.

The listing also revealed that 74.3 per cent of the company’s shares are owned by Principion Holding BV, an entity controlled by its co-founders. Azerion reported a revenue target of at least €355M for current financial year, 2021, and has already spent €139M on nine acquisitions. It has reported €83.5M in revenue during the third quarter of 2021 and adjusted EBITDA of €17.42M for the quarter.

Azerion: what you need to know

Azerion was founded in 2014 by two Dutch entrepreneurs, Umut Akpinar and Atilla Aytekin, as a media and technology company offering valuable content on a European scale with local presence. The company makes software that automates the purchase and sale of digital advertising and has begun making online games and content.

The company has more than 16,000 game titles with over 425 million monthly active users. Azerion generates revenue through advertising spend across its platform and via in-game purchases. The company says that 22 per cent of its revenue in 2020 came from in-game purchases. It also generates additional revenue from AAA game distribution.

The company was long seen as a growth opportunity and has leveraged that to expand its reach with an active acquisition strategy. It has acquired the likes of Improve Digital, HiMedia Germany, Zoomin, Collective Media Europe, Widespace, Sellbranch, Sulake, Smeet, Semilo, Adpulse, Adux, and the mobile division of Spil Games.