VIG nets 2.1x return on Korea price comparison site deal

Koreacenter will acquire an 89.5% interest in the company, of which VIG holds 80.4%. Other investors include Kiwoom Investment, IBK Capital, and Daesung Private Equity. VIG said it would realize an approximate gross multiple of 2.1x and a gross IRR of 23.5% on the investment.

The private equity firm acquired the business in April 2014, paying KRW50 billion. According to AVCJ Research, the sellers included Hong-cheol Seo, Summerce’s founder and CEO, as well as venture capital firms SL Investment and Mirae Asset Venture Investment. Kiwoom, IBK and Daesung committed KRW10 billion a year later through a new share placement.

In addition to Enuri.com, Summerce operates parcel tracking platform Sweettracker and mobile advertising business ShallWeAd. Its sites receive more than 6.5 million visitors per month. The company recorded consolidated revenue of KRW34.2 billion and an operating profit of KRW12.2 billion last year, up from KRW18.7 billion and KRW6.5 billion, respectively, in 2014. Growth has been driven through mobile expansion and a string of bolt-on acquisitions.

Koreacenter is an e-commerce application service provider. Through platforms like Malltail, MakeGlob, and OKDGG, it helps clients establish online shopping malls in multiple languages and handles the entire e-commerce process from marketing through delivery. The company, which is targeting an IPO later this year, claims to have more than 50,000 online shopping malls in its network.

“Koreacenter and Summerce Platform are leading companies in their respective industries and will have the opportunity to create multiple synergies in various businesses. We believe Koreacenter will be the best partner for Summerce Platform and its employees,” Chulmin Lee, a partner at VIG, said in a statement.

The exit, which is expected to be finalized next month, follows an IPO last year for another VIG portfolio company, camera lens manufacturer Samyang Optics.

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• Topics
• North Asia
• Technology
• Consumer
• Trade sale
• South Korea
• TMT
• VIG Partners