Czech Republic photography agency Profimedia has completed the acquisition of Hungary based agency Red Dot for an undisclosed sum.
Profimedia, the largest provider of images for media and the advertising industry in the Czech Republic and Slovakia, has strengthened its position in other Central and South-East European markets. In line with its development strategy, it has become the 100% owner of Red Dot – a leading supplier of photo content in Hungary, Croatia, Slovenia, Serbia, and Bulgaria.
The majority owner of the Profimedia photo agency is Genesis Capital that acquired a 60% interest in Profimedia through its Genesis Private Equity Fund (GPEF II). The interest was purchased from the Profimedia founder and director Petr Novák last June. Petr Novák also co-invested in the Red Dot acquisition. The value of the transaction will not be disclosed, as agreed with the previous owners of Red Dot.
“Red Dot suitably complements the existing activities of the Profimedia Group in the Hungarian market and gives it an opportunity to enter markets in other Southern European countries where it has not yet had a presence,” said Jan Tauber, Director of Genesis Capital.
Red Dot provides photo content to hundreds of customers, primarily in media and advertising; it is one of the three largest photo banks in Hungary and number one or two on the markets in Croatia, Serbia, and Slovenia. “We plan to develop our business on the markets on which Red Dot operates and to expand our offer and the quality of services provided to clients in those countries,” said Petr Novák, who will be personally involved in the integration of Red Dot into the Profimedia Group, together with Attila Kovács, the new Director of Profimedia’s operations in Hungary and the Balkan countries.
About Genesis Capital
For more than ten years, Genesis Capital has been offering financing to small and midsize companies in the Czech Republic and Slovakia, to support their growth and development. Via its private equity funds, Genesis Capital has already supported more than twenty dynamic Czech and Slovak businesses, many of which have become cutting edge in their chosen field, thanks to their relationship with Genesis Capital. In total, Genesis Capital has provided more than 2 billion Czech crowns in growth capital for companies in the Czech Republic and Slovakia.
Since its inception in 1999, Genesis Capital has managed three private equity funds with a total volume of almost € 100 million. The first two funds have already fully committed their capital. At present, Genesis Private Equity Fund II, with a volume of € 40 million, is open and available to finance prospective investments. The companies into which Genesis Capital has invested include AB Facility, pietro filipi, CCS, ETARGET, Gumotex, Energetické strojírny Brno, Roltechnik, Profimedia, Vydis, GTH CATERING, and others.
In the present environment, marked by difficult access to standard bank financing for small and midsize enterprises, Genesis Capital funds provide an advantageous alternative for acquiring the required capital for companies with growth potential; the funds also focus on buy-out financing. Their investors include the European Bank for Reconstruction and Development, Česká spořitelna, and the Belgian investment company Gimv.
Profimedia manages an extensive databank of more than 40 million professional images, footage, illustrations, and promotional photographs from around the world, provided through its client-friendly web application for publication in the media or for advertising and marketing purposes. With an over fifty percent market share in the Czech Republic, where it is the clear market leader, the Company’s clients include the majority of publishers of newspapers, books and magazines, as well as leading advertising agencies, web portal operators, television stations and many large companies. The situation is similar in Slovakia, where the Company’s market share is estimated at 60 percent. Profimedia is the third largest photo agency in Hungary and also operates in Slovenia, Croatia and Serbia. Overall, Profimedia works with more than 500 publishers and 1,200 advertising agencies. Most of the photographs in its database come from major international suppliers of visual material such as Corbis, AFP, or New York Times, and from the its growing network of co-operating photographers.