Eniro AB announced it had acquired 100 percent of the Danish directory company Krak from the Krak Foundation. This deal ends months of speculation as to who would purchase Krak after its announcement last summer that it was open to offers. The deal is worth an estimated 500 million Swedish kronor (US$72 million) for a multiple of nine times EBITDA. According to the release, for the fiscal year 2006/07 (ended April 30), revenues were SEK 254 million (US$37 million), of which online revenues were reportedly 55 percent.
Tomas Franzén, CEO and president of Eniro AB, is quoted in the release as saying, “With the acquisition of Krak, we further strengthen our position as the leading search company in the Nordic countries. I am very pleased that we have been able to do this acquisition.”
Eniro’s move helps it own yet another Nordic online marketplace. After its acquisition of Norwegian publisher Findexa in late 2005, Eniro became the dominant online directory player in Norway. Through the purchase of Krak, Eniro is now the largest online directory player in Denmark. As the Nordic countries continue to shift away from print directories at a much faster rate than their European counterparts, this was a wise purchase. The purchase also keeps another strong European player from entering the market, since European Directories was also rumored to be interested in purchasing Krak.