Invenfin, the venture and growth capital division of South African investment group Remgro, announced the acquisition by Aleph of South African media sales business, Ad Dynamo.
The acquisition by Aleph, global partner to the world’s biggest digital media players, will accelerate Ad Dynamo into its next phase of growth — scaling its services to more platforms and more countries across the African continent.
Ad Dynamo is the exclusive media sales partner for Twitter, Snap, Spotify and other platforms across Sub-Saharan Africa, and is viewed as the continent’s leading digital media sales business. Based in Cape Town, South Africa, the company has an extensive presence across Africa as well as in Ireland.
“Ad Dynamo has built a proven sales engine for global platforms across the continent, with revenue more than tripling over the past 4 years. Aleph’s acquisition of Ad Dynamo solidifies our position as the leader in digital media sales across Africa and opens up new opportunities for growth,” said Sean Riley, Founder and CEO of Ad Dynamo.
“We have been fortunate to get to know Gastón and the Aleph team over the years and there is very much a shared vision and common culture shared by the businesses. We are delighted to join the Aleph family.
“We are very grateful for Invenfin’s strong support and partnership, which has been critical to the success of Ad Dynamo, and we hope this successful exit inspires the next generation of entrepreneurs throughout the African startup ecosystem.”
With the African continent’s young, increasingly digitally connected population and fast-growing economies, Ad Dynamo is well-positioned for strong growth over the coming decade.
The transaction allows Aleph to expand into the fast-growing African digital advertising market, with Aleph confident that adding Ad Dynamo to its portfolio will cement its global footprint and growth trajectory.
“I am very proud to announce this deal, as a South African-founded company being sold to an international business does not happen every day. This is great news for our economy and validates the fast-growing local tech ecosystem. We believe Aleph is the perfect global partner for Sean and his Ad Dynamo team to build an even bigger success story in Africa,” said Stuart Gast, CEO of Invenfin.
“There is huge value in expanding throughout Africa, both to serve our current partners and clients and to expand on existing relationships in other parts of the world. We have been following Ad-Dynamo’s growth and geographical expansion over the last five years and I am excited to welcome them to the Aleph family. I admire Sean and the entire Ad Dynamo team, and look forward to working together to make this a successful partnership,” said Gastón Taratuta, Founder and CEO of Aleph.
Aleph’s acquisition of Ad Dynamo excludes Blue Robot, its digital messaging and marketing technology solution. Terms of the transaction, which closed in December 2021, were not disclosed but are understood to be significant in the South African context. The Ad Dynamo management team is unchanged and will continue to lead the business.
The acquisition of Ad Dynamo follows CVC’s $470 million or R7.2 billion investment in Aleph announced in 2021.
“This is a milestone deal for Invenfin, both because Ad Dynamo was our first ever investment over 10 years ago, and because the transaction is material and generates strong financial returns for all Ad Dynamo’s shareholders. This exit proves our investment model of actively partnering with management and other shareholders, to grow through the very tough scale up phase. We look to back high-growth companies with global potential, and Ad Dynamo has been a successful investment,” concludes Gast.
