CRTO Acquisition of HookLogic…

Presser from Criteo today announcing the acquisition of HookLogic.
There was a conference call as well.

If there is anyone still interested in CRTO here, I’ll post anything of importance.



AJ - I’m still in Criteo and interest.

The call can be accessed via the link above.

CRTO still falls under a category of slightly too difficult for me to understand as I’ve said before, yet I’m still invested based on their growth.

CRTO will acquire 100% of HookLogic in an all cash deal worth $250M to be settled in Q4 2016.

After listening to the call, there appears to be meaningful growth prospects through the HookLogic (HL) acquisition.

HL connects consumer brands to retailers on line. In essence, the retailers in HL business model are publishers in the CRTO model and consumer brands are the advertisers buying publisher’s space. Apparently, CRTO had a little to no consumer clientele on the advertising side, so this opens a large space for them.

They envision injecting their machine learning, unique technology to enhance what HL has already been successful at. CRTO also believes they can engage their current clients with HL tech for additional cross selling.

Finally, CRTO claims the braintrust they are acquiring at HL is quite impressive.

Financially, CRTO expects the deal to be slightly dilutive in 2017 and accretive in 2018 to Adjusted EBITDA.

Based on the 2019 (3 year projection) of Revenue Ex-TAC for HookLogic, CRTO estimates they are paying between 2x and 2.5x Rev Ex-TAC.

I do not know CRTO TTM Rev Ex-TAC. The last two quarters have totaled $328M. Let’s assume a TTM total of $656M. The market cap is $2.2B giving a multiple of 3.35x Rev Ex-TAC.

CRTO began the day down today and recovered quickly. Maybe the market likes it. Who really knows. I’ll be holding and following closely.


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Hi AJ and Ant, I’m still in CRTO and interested as well.

Thanks, Brian