Became profitable just a year after start
US online advertising firm Digital Global Services (DGS) is due to announce plans later today to raise up to £12.5 million on London’s Alternative Investment Market (Aim) as a springboard for expansion into Europe.
DGS, which buys advertising space on search engines and Facebook for teleco clients, is looking to float in mid-February despite not yet having a presence in the UK.
The firm hopes to build on the increasing competition for online advertising space, using its technology to cherry pick the best ad slots on Google, Facebook, Yahoo and Bing.
The company can also handle other parts of the sales process, such as providing a call centre. It then takes a cut from each sale completed, eliminating the risk of advertising for the seller.
Chief executive Jeff Cox said the Colorado-based company will use the £9 million to 12.5 million it expects to raise on Aim to launch operations across Europe, starting with Germany, France and the UK.
DGS has been profitable since 2009, 12 months after it was founded, and it saw revenues grow by 65 per cent last year.