Verve (Ticker: VER) is a fast-growing, profitable, digital media company that provides AI-driven ad-software solutions. Verve matches global advertiser demand with publisher ad-supply, enhancing results through first-party data from its own content. Aligned with the mission, “Let’s make media better,” the company focuses on enabling better outcomes for brands, agencies, and publishers with responsible advertising solutions, with an emphasis on emerging media channels. Verve’s main operational presence is in North America and Europe. Its shares are listed on the Nasdaq First North Premier Growth Market in Stockholm and the Scale segment of the Frankfurt Stock Exchange. The company has three secured bonds listed on Nasdaq Stockholm and the Frankfurt Stock Exchange Open Market.
We find the acquisition of Jun Group to be a good strategic fit for Verve and we view the acquisition price as highly compelling. Despite the diminishing effects following the acquisition, Verve’s risk profile remains on the high side, but we believe that the company’s valuation is low at current share price levels and presents an attractive risk/reward ratio.
Verve Group announced yesterday after-market that the company is acquiring Jun Group, a digital advertising platform, from the U.S. listed company Advantage Solutions Inc in a deal worth EUR 170 million. In conjunction with the acquisition, Verve has successfully raised SEK 450 million through a directed share issue. The acquisition will have a substantial impact on Verve’s financials and the company also raises its 2024 guidance. Our initial take on the deal is positive and we will get back with updated estimates in the coming days.