Pitch Best Small Cap Deal 2022: Podimo – Dag en Nacht Media

Name of the deal: Podimo acquires Dag en Nacht Media from V-Ventures 
Date announced: 30 March 2022 
Date closed: 30 March 2022 
Published value: 5 – 50 million euros 
Buyer(s): Podimo 
Target: Dag en Nacht Media 
Seller: V-Ventures 

Involved firms and advisors 

Involved firms and advisors buy side:  
KPMG (Financial Due Diligence), Baker McKenzie and Accura Advokat Partnerselskab (Legal advisory Corporate M&A) 

Involved firms and advisors target:  
De Roos Advocatuur (Legal advisory Corporate M&A) 

Involved firms and advisors sell side:  
Vestius Advocaten (Legal advisory Corporate M&A) 

Pitch  

Brief description deal / Deal outline  
Podimo, a Danish paid podcast service, has acquired Dag en Nacht Media, a major podcast publisher in the Netherlands. Podimo will distribute Dag en Nacht's shows via an app that requires a paid subscription. Dag en Nacht Media was founded in 2015 by childhood friends Tim de Gier and Anne Janssens. Until now, V-Ventures was the company's only investor. Now all shares are owned by Podimo. 

Why should this deal win the Award for Best Deal Small-Cap 2022?  
The acquisition of Dutch company Dag en Nacht Media by Danish company Podimo marks a change in the Dutch podcast market. Not only have many of the most popular Dutch podcast titles changed hands, but the business model has changed as well.  

Listeners will have to pay for a number of podcasts through Podimo's app. Until now, almost all popular Dutch podcasts could be listened to for free via platforms like Spotify. The productions were largely financed by advertising. 

Listeners seem to be willing to pay for high-quality podcasts and exclusive content. With a subscription model, even the more expensive podcasts can still be offered profitably.  

This deal deserves the Small Cap award because two companies from different countries, well matched in many ways, are ready and able to transform the high-growth Dutch podcast market. The deal will accelerate the maturation of the market. 

Deal rationale:  
Morten Strunge, CEO of Podimo: "Dag en Nacht Media is one of the most prolific publishers of podcasts in the Netherlands. They were a first mover in the Netherlands and have produced some of the most popular podcasts in the country since then. Tim and Anne have built a world class team. We want to keep Dag en Nacht as it is, it will be business as usual for them."  

Tim de Gier, CEO of Dag en Nacht Media: "The market for podcasting has been growing at breakneck speeds. Because of our partnership with Podimo we will now be able to dramatically increase the volume and quality of our podcast productions. It’s still early for the world of podcasts, and there are many stories not yet told that we’re so excited to tell. We’re here to help people get informed, get entertained and learn from the best creators in the country. I’m very happy that we can now bring our podcasts to the next level." 

What is the impact of this deal for the company?  
With the acquisition of Dag en Nacht Media, Danish podcasting service Podimo has taken over the largest podcast publisher in the Netherlands. And Dag en Nacht Media continues to grow rapidly. Every month, the number of podcast episodes listened to doubles. With the acquisition, Podimo acquired a significant share of the Dutch podcast market. 

What is the impact of this deal for the direct stakeholders?  
For Dag en Nacht Media, it means taking their podcasts to the next level while business continues as usual. For Podimo, it means a fresh start in a new country. For customers, it means entertainment, information and learning. 

What is the impact of this deal on society?  
Podcasts are and remain unabatedly popular in the Netherlands. Today, almost half of all Dutch people (18 years and older) listen to a podcast (49%); that's about 6.9 million Dutch people. Not only the number of listeners is increasing, but also the intensity of listening (more often and longer). This is according to the 7th measurement of the Market Effect Podcast Monitor. The deal will accelerate the maturation of this very popular market. 

What was most complex about this deal?  
The most complex part of the deal was the carve out of a subsidiary of Dag en Nacht Media before the closing.