MercadoLibre Will Invest in Aleph Group as Part of a Digital Advertising Operating Agreement. Company Now Valued Over $2b.
The largest Latin American e-commerce and fintech player, MercadoLibre, agrees to join Aleph Group as a shareholder, signaling the growth potential in the global digital advertising industry. Aleph operates in Latin America through IMS Internet Media Services.
MercadoLibre has agreed to acquire a $25M stake in Aleph and additionally, will collaborate with IMS Internet Media Services on monetizing advertising space on MercadoLibre’s digital properties in countries where MercadoLibre does not have local sales operations. Further, MercadoLibre and Aleph will partner to explore and collaborate in new business development opportunities in digital advertising.
This is a period of significant growth and momentum for Aleph who recently announced that CVC Capital Partners Fund VIII acquired a minority stake in Aleph for $470M valuing the company at $2 Billion.
“It is an honor for us to have MercadoLibre as a shareholder. This is a clear endorsement of the growth opportunity Aleph has ahead in realizing our global vision: digital media has the power to unlock economic development and should be experienced equally everywhere around the globe,” said Gastón Taratuta, Aleph Founder and CEO. “We have known Marcos and his team for more than two decades and this is a great opportunity to work together.”
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“We are excited to support Aleph’s growth within the global advertising ecosystem. We know of the enormous potential of online advertising and I am confident that this strategic investment and synergy between both companies will continue to enhance the development of digital advertising in the region,” said Marcos Galperin, CEO and Founder of MercadoLibre. “I have known Ignacio and Gastón for more than 20 years. I trust their execution and I’m very enthusiastic about working with them. We look forward to contributing to Aleph’s expansion and exploring new opportunities together.”
“We are thrilled to partner with MercadoLibre, a company that we admire and that is becoming a key player in the digital advertising space. With this operational agreement we are looking to enhance IMS Internet Media Services’ offering and position in Latin America, reinforcing us as a leader in the region.” said Ignacio Vidaguren, Aleph COO and IMS CEO, who was formerly a senior executive at MercadoLibre for over 10 years.
The transaction, which is subject to preparation of final documentation, is expected to close by the end of August.
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