Pureprofile Sells ANZ Cohort Business

Digital research and ad targeting platform Pureprofile has sold the Australia and New Zealand divisions of its Cohort lead generation business to call centre tech firm Unit4, for $500k. The sale does not include the Performance business operating in the UK.

Pureprofile acquired Cohort in 2016 for $25m in a bid to 'deliver one of the most comprehensive data insights, programmatic media and lead generation offerings in Australia and internationally'. However, last year, it suggested it had been misled over the state of Cohort at the time of the sale and there followed a dispute with the seller, Oceania Capital Partners, over 'poor financial stewardship'. In October, the firm was forced to 'write down' Cohort and decommission / absorb its technology and assets.

In a statement, the firm said the ANZ Performance business has continued to experience declining revenues, becoming 'unsustainable to maintain' with its existing operating model and cost base. According to Pureprofile, the sale is expected to improve the company's gross margin % and EBITDA - it follows last month's report of a 16% fall in revenue to $23.8m for the second half of 2018, along with a 50% drop in EBITDA to $0.6m.

Pureprofile CEO and MD Nic Jones (pictured) comments: 'Following the sale, we will continue to make our business more simple, and this will include some changes to the management team so that it is better aligned to focusing on the remaining core businesses, which have continued to grow solidly. Now, with this sale and with a renewed focus on a simpler, growing business, we must continue to look forward and I am truly excited by the future opportunities that this will present Pureprofile'.

Web site: www.pureprofile.com .