ComTel acquires Deal Group Media – search and affiliate marketing company

ComTel Managing Director Chris Meehan said the acquisition strengthens the Company's presence in Australia's rapidly growing online advertising sector.

"dgm has been operating in the performance-based sector since 2003, offering clients online marketing programs across multiple channels – affiliate marketing, search engine optimisation, pay per click advertising and online display," he said.

The purchase of dgm is in line with ComTel's strategy of growing and acquiring profitable businesses operating in the digital performance space.

"We selected dgm because of its strong presence in the sector, the quality of its people and customers, its earnings and its growth potential. The growing business delivered $1.4 million in EBITDA in calendar year 2009 before an allocation of overseas parent entity charges."

ComTel estimates that the equity purchase price payable upon completion will be between A$4.5 and A$5.0 million, and the acquisition is forecast to be earnings accretive in year one.

Managing Director of dgm Craig Ellis said the formation of a performance-based marketing group will give a much-needed boost to the industry, and it was exciting for dgm to be a part of that growth.

"The dgm business model was founded to help clients achieve more customers and sales from their online marketing activities. This is aligned with ComTel's objectives and signals a bright future for our business and industry," Mr Ellis said.

Mr Meehan said both entities will continue to operate under their existing brand names, and draw on their combined strengths to offer a broader range of highly targeted advertising strategies.

"Both Empowered and dgm sell performance-based online inventory to Australia's leading advertising agencies, media buyers, and corporates," he said. "Our plan is to invest in both businesses and build on their strong market positions so that we capture a greater share of online advertising revenue.

"Currently the performance-based industry accounts for more than 25 per cent of the General and Display advertising category.

"A key driver of growth in this segment is the need among advertisers to measure performance at a time when marketing budgets have come under pressure.

"We are addressing this demand by building or buying digital marketing businesses that deliver campaigns that are optimised for return on investment."

Mr Meehan said the company would soon rebrand ComTel as Digital Performance Group and that it will continue to pursue strategic acquisition opportunities that are complementary to its current operations.
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About ComTel Corporation Ltd
An ASX listed holding company for businesses that sell targeted and measureable online advertising campaigns that generate online sales, qualified customer leads and increased brand awareness. ComTel's customers are some of Australia's leading media buyers, advertising agencies and corporates.

Empowered Communications
Empowered has 500,000 Members sourced via a network of six loyalty websites (each site rewards members in exchange for receiving research or emailed offers). Detailed demographic data is collected from each of its members to enable advertisers to conduct highly targeted, performance-based campaigns. www.empoweredcomms.com.au

dgm Australia
dgm works with Australia's leading advertisers, web site publishers and agencies to devise and deliver online marketing campaigns across the key areas of search engine marketing, affiliate marketing and display advertising. dgm's clients have access to sophisticated proprietary technology and are guided by experienced account management and consultancy teams, to achieve high-performing online marketing campaigns that fulfil their business objectives such as more leads, more sales and greater brand awareness. Web: http://www.dgmmarketing.com.au

Performance-based digital marketing
Performance-based digital marketing is a form of online advertising that focuses on customer acquisition and lead generation. Clients pay for targeted advertising campaigns that deliver results through a variety of channels such as website banners, email, social media and SMS.
For further information please contact Chris Meehan, Managing Director on
0407 149 544 or Emma Cullen-Ward, OneProfile Communications, 0414 989 137