Eniro Group AB announces strategic collaboration with Azerion Group N.V.

Stockholm, Sweden - 2024-04-26, Eniro Group AB, a leading provider of digital marketing solutions in the Nordic region, is to announce a strategic collaboration with Azerion Group N.V., a digital entertainment and media platform. This partnership marks a milestone in Eniro's ongoing transformation and innovation efforts, aiming to optimize digital advertising performance and expand service offerings.

Founded in 2014, Azerion is one of Europe's largest digital advertising and entertainment media platforms. Azerion brings global scaled audiences to advertisers in an easy and cost-effective way, delivered through their proprietary technology, in a safe, engaging, and high-quality environment, utilizing the strategic portfolio of owned and operated content with entertainment and other digital publishing partners. Having its roots in Europe with its headquarters in Amsterdam, Azerion has commercial teams based in over 24 cities around the world to closely support clients and partners to find and execute creative ways to make an impact through advertising.

Eniro operates as a marketing-as-a-service company providing essential digital marketing services tailored to micro, small, and medium-sized businesses across Sweden, Norway, Denmark, and Finland. Through its proprietary and efficiently designed products and services within digital marketing, Eniro connects consumers with businesses efficiently and effectively, bolstering online presence and accessibility.

In this strategic partnership, Eniro and Azerion will focus on five key initiatives to enhance digital advertising and operational efficiencies across the board. Eniro will initially invest EUR 3 million to secure savings and enable revenue increase opportunities.

• Eniro will transition its Google Ads bookings from current platforms to Azerion. This move is expected to increase profitability by capitalizing on Azerion's economies of scale.
• Azerion will manage the resale of Bing advertising, previously handled in-house by Eniro. This strategy aims to reduce annual costs significantly, while potentially increasing revenue.
• By leveraging Azerion's expertise and sales operations staff, Eniro plans to boost its display advertising sales from current approximate SEK 60 million annually, enhancing revenue and increasing profitability. This initiative will increase simplicity in organization and reduce personnel and overhead costs, as Azerion will handle sales operations.
• The partnership will enhance Eniro's lead generation by transitioning management of its Google and Meta advertising to Azerion, aiming to lower annual expenses and increase profitability.
• Eniro will outsource its technology operations and hosting to Azerion, aiming to save up to half of its currents costs annually. This transition involves moving from on-premises servers to a modern and more scalable cloud solution, reflecting a major step in Eniro's digital transformation strategy.

These initiatives are forecasted to have a financial impact of increased revenues amounting to circa SEK 40 million and savings in the focus areas of about SEK 50 million, when fully implemented. These areas of collaboration are a strategic commitment to enhancing operational efficiencies and profitability and are aligned with Eniro's ongoing dedication to innovation and providing superior digital marketing solutions. The previously announced transformation from a sales to a product-oriented company is accelerating with the collaboration with Azerion. Through this partnership, Eniro leverages Azerion's expansive reach and technological expertise, ensuring that small and medium-sized companies receive the best tools for success in the digital realm.

Thanks to this collaboration, Azerion will expand its footprint in the Nordic markets, demonstrating its platform's capabilities and fostering deeper engagement within the digital advertising space. This partnership also exemplifies Azerion's commitment to supporting partners within the IYP-industry through transformative digital solutions.

"We are enthusiastic about this partnership with Azerion, which represents a strategic alignment with our vision to empower small and medium-sized enterprises with advanced digital marketing tools," stated Hosni Teque-Omeirat, President and CEO of Eniro. "This collaboration not only enhances our service offerings but also reinforces our commitment to driving innovation and efficiency across the digital landscape."

"This collaboration with Eniro emphasizes our commitment to leveraging our technology and scale to support businesses in maximizing their digital strategy," remarked Alexander Hannerland, Head of Nordics at Azerion. "By integrating our platforms and expertise, we aim to deliver substantial value and growth opportunities for Eniro and its clients, marking a significant step forward in our expansion into the Nordic markets."

Eniro and Azerion are excited about the potential of this partnership to set new standards in digital marketing and advertising. The initiatives are designed to foster growth, efficiency, and innovation, propelling both companies towards a future of digital excellence.

It has come to Eniro's knowledge that Azerion intends to acquire shares in Eniro. The Agreement is therefore conditional upon approval of the Eniro's annual general meeting that is planned to be held on 29 May 2024.