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Izea to Acquire LATAM Influencer Marketing Firm Fluvip
Friday 11 January 2019

11 January 2019 – US-based Izea Worldwide, Inc. (NASDAQ: IZEA), operator of Izea, an online marketplace connecting brands and publishers with influential content creators, has entered into a non-binding letter of intent to acquire all the outstanding shares of Latin American influencer marketing firm Fluvip Ventures, SL , the company said.

Fluvip provides influencer marketing and custom content solutions to brands and agencies throughout Latin America and in the US Hispanic Market.

The company is headquartered in Bogotá, Colombia, with subsidiary operations in Brazil, Mexico, Peru, and Argentina.

Fluvip operates multiple technology platforms including Influtech, AdvocatesPro, and Mediadata. The company has established a network of more than 100,000 opt-in influencers throughout Latin America and the US Hispanic market, ranging from micro-influencers to some of the largest influencers in each country.

Investors in Fluvip include Cisneros Group, Telefonica (Wayra), Velum Ventures, and The Venture City, who would become shareholders in Izea post transaction.

The transaction contemplates that Fluvip will become a wholly-owned subsidiary of Izea.

Consideration paid to shareholders of Fluvip will be in the form of cash and Fluvip stock paid or issuable at closing and over a trailing 36-month period subsequent to the closing, with potential additional consideration tied to future FLUVIP operational performance metrics.

Based upon unaudited information provided by Fluvip to Izea, the company's revenues for the year ended December 31, 2017 were approximately USD 9m.

Net loss for the year ended December 31, 2017 was USD 987,000.

Fluvip's financial information has not yet been audited, may not comply with US GAAP standards, and actual numbers may be materially different from what was provided and reported herein. Fluvip's revenues are comprised primarily of managed services fees, with a growing base of customers licensing their software.

Consummation of the transaction contemplated by the LOI is subject to due diligence and the execution and delivery of a definitive acquisition agreement along with the satisfaction of the closing conditions which will be contained therein.

It is contemplated that the acquisition will be consummated in May 2019, but there can be no assurance that a definitive agreement will be entered into, or that the acquisition will be consummated upon the terms set forth in the LOI, or otherwise. In the event that the acquisition is consummated, there can be no assurance that it will ultimately prove to be beneficial to Izea.

Izea operates IZEAx, an online marketplace that connects marketers with content creators. 

Izea automates influencer marketing and custom content development, allowing brands and agencies to scale their marketing programmes.
Details
Date Published: 11/01/2019
Target: Fluvip Ventures, SL
Country: Colombia
Sector: Advertising/PR
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Vendor:
Buyer: Izea Worldwide
Comment:
Terms of the deal were not disclosed

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