• by Steve McClellan  @mp_mcclellan, October 13, 2014

Publicis Groupe has acquired 20% of Israeli digital performance advertising company Matomy for approximately $65 million, the companies confirmed Monday.

Matomy, based in Tel Aviv, was founded in 2007 and now has a market capitalization of about $325 million. Publicis Groupe has an option to acquire an additional 4.9% of the company within 45 days, which would raise its stake to 24.9%.

In July Matomy completed an IPO on the London Stock Exchange, following a strong first half of the year when revenue increased by 20% to $129.1 million and adjusted earnings before interest, taxes, depreciation and amortization rose 61% to $12.7 million. The company credited increased mobile and video activity and acquisitions for the gains.

Matomy has a global staff of 400 and more than 1,600 clients in more than 100 countries. Clients include American Express, HSBC and Experian.

Matomy’s performance-based approach includes an integrated multichannel platform upon which advertisers have a single point of contact across all major digital media channels including a display ad network, mobile, social and video advertising, email marketing, search marketing and search engine optimization. 

The firm charges its customers only if it achieves certain predefined measurable results such as sales, consumer acquisitions, leads and mobile installations. This so-called “pure performance” model is currently a $12 billion market, forecast to reach $45 billion to $60 billion by 2020, according to a study by the IAB.

“Tel Aviv is second only to Silicon Valley in technological innovation and patents,” said Publicis Groupe CEO Maurice Levy…Matomy has quickly risen to the top of this important market by creating a world leading, state-of-the-art platform.”

Matomy Chairman IIan Shiloah said that Publicis’ decision to invest in the company as its largest shareholder would enable it  “to be able to create a more mature and sustainable ecosystem, providing marketers with an unprecedented ability to accurately engage, acquire and retain customers.”