(AOF) – DNXcorp has announced the signing of an acquisition protocol for the company PK Multimedia BV in Holland. This company is the main business partner of DNXcorp. Since 2002, it has successfully operated brands broadcasting DNXcorp webcam services in affiliation. The strong reputation of these brands has allowed the group to be the leader on the Dutch market. PK Multimedia is therefore positioned as a provider of business by referring visitors via its sites to the webcam platform of DNXcorp, which thus manages the activity generated in return for a commission on sales.
This acquisition will therefore not generate additional revenue for the DNXcorp Group, but will make it possible to eliminate the commissions usually paid on this revenue, with a direct positive impact on the Group’s operating profit. PK Multimedia generated in 2021 an EBIT of 1.4 million euros.
The acquisition includes all of the brands and domain names, but does not include the takeover of employees, as the assets can easily be operated by the DNXcorp teams.
The purchase price amounts to 7.2 million euros in cash, including 4 million paid on signature, and 3.2 million in vendor credit over a period of 2 years.
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big concerns
According to the Federation of specialized trade, Procos, activity from January to May is very significantly down compared to the same period in 2019, at – 8.8%. Store traffic in May 2022 remained lower than in May 2019, but the decline was limited to 6.5%, much better than in April (-19.6% compared to April 2019). In a very uncertain context, several elements weigh on the profitability of companies, in particular the increase in the cost of electricity and the indexation of rents, even if the composition of the ILC (commercial rent index) has been modified. Previously it was composed of 50% inflation, 25% construction cost index and 25% change in retail turnover. From now on, it will only take into account inflation and the cost of construction because the previous formula included sales made by the ‘pure players’ of the Net, which increased the rents of physical stores.