Olswang announces that it has advised the selling shareholders on the sale of goviral to AOL Europe. Established in 2005, goviral is a video distribution network that delivers branded content over the internet for some of the world’s largest and most esteemed brands, media agencies creative agencies and content producers. The transaction was completed for $74.1 million in cash with an additional $22.6 million of consideration being paid over two years following completion.
The deal follows a number of strategic acquisitions made by AOL recently, including Techcrunch and most recently, About.me which was purchased in December. The goviral deal will see AOL further strengthen its video offerings in the European market whilst positioning the business among the forefront in the industry for its international reach and ability to engage targeted consumer audiences and serve its advertising partners.
Starting with only two founding partners in 2005, goviral today has offices in the UK, Germany, France, Denmark, Sweden and Spain. goviral’s current video content distribution network includes more than 18,000 publishers, allowing its clients to reach in excess of 350 million global internet users.
Commenting on the deal and on working with Olswang, Rene Rechtman, CEO of goviral said, ‘The Olswang team brought huge professionalism to the table and worked tirelessly to get the deal across the line. We were delighted to have them at our side’.
This transaction for Olswang is the latest in a number of significant corporate mandates completed in the internet and e-commerce sector. Other recent transactions have included advising LivingSocial, the leading social commerce site backed by Amazon, in its acquisition of a majority stake in Let’s Bonus, the pioneer social shopping site in Europe, advising Net-a-Porter on its £350 million sale to Richemont and advising PartyGaming on its £96 million acquisition of online bingo marketing company, Cashcade.
Corporate partner, Stephen Hermer, led the Olswang team acting for goviral, assisted by senior associate, Rob Willis. The team was assisted by Georgina Ball (Corporate), Mark Joscelyne, Stephen Smith and Hugo Webb (Tax), Mike Deeks, Lea Mercado and Annie Popplewell (Employee Incentives), Iain Stansfield, Marc Dautlich, Suparna Bhattacharjee and Greg Ruback (Commercial), Melanie Lane and Jenny Poole (Employment) and Stephen Slater and Holly Henderson (Real Estate).
Skadden Arps in London (Hunter Baker) advised AOL.
