Last week we broke the news that Sanoma had acquired the Finnish based coupon site Offerium. We promised to dig a little deeper into this and see what the motives and actual tricks of trade behind the deal were. Oskari Lehtonen was one of the co-founders of the company and we turned to him with a few questions about the acquisition itself.
ArcticStartup (AS): How long was the journey by Offerium (from its founding to the acquisition)?
Oskari Lehtonen (OL): We started approximately two years ago with My Butler Service. Offerium has been working approximately 15 months but even during that time we have had 5 major development versions. So very rapid ramp up and execution.
AS: How easy was the ramp up in Finland, in terms of sales? Was Citydeal a big contender?
OL: I think that we were very successful in terms of business customers (advertisers), but getting masssive amount of consumer customers was much more difficult. That was one reason why Sanoma was an ideal partner for us.
Citydeal definitely raised awareness in the market and therefore made our life easier. An interesting observation I noted though, was the fact that I saw our advertisers also promoting at Citydeal’s website.
AS: Which part of Offerium did Sanoma most like? What was attractive?
OL: I think it was our experience of running this kind of business. By buying Offerium they could dramatically steepen their learning curve. Also we have had huge amount of business customers so now Sanomat got direct access to them as well.
AS: Any comments on the price – through which metrics was the company valued?
OL: About pricing, we were satisfied with the pricing. We didn’t use any spefic metrics we just estimated how much we want to get from Offerium. I know that we conducted an exit fairly early and the market will be growing rapidly for a long time. However for us this was ideal situation. I think that market is getting pretty crowded in Finland as well.
It is good to acknowledge that Offerium isn’t and wasn’t my main project. I am working full time as a partner at KoppiCatch and that consumes so much time and energy that Sanoma acquisition was really good from that point of view as well.