Medigus Ltd. (MDGS)

[Mr. Zen]

Today's News. Medigus: Gix Completed Acquisition of Leading Media-Tech Company Cortex Group for Approximately $11 Million
October 14 2021 - 07:57AM
GlobeNewswire Inc.
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Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions, innovative internet technologies and electric vehicle and charging solutions, announced today that its affiliate Gix Internet (38.01% on a fully diluted bases) (TASE: GIX), a global marketing technology (MarTech) solutions company for online performance-based-marketing, announced that Gix Internet’s subsidiary, Gix Media completed the acquisition of 70% of Cortex Group, an innovative media-tech company that has developed expertise in turning original content into a profit center through user traffic acquisition.

The acquisition was based on a Cortex pre-money valuation of approximately $15.6 million (NIS 50 million), out of which Gix Media’s 70% stake constituting approximately $ 11 million (NIS 35 million).

Cortex was established in 2017 and has since been operating with remarkable success in the field of online advertising. Cortex is an innovative media-tech company that has developed capabilities that enable the conversion of original content into a profit center by acquiring user traffic. Cortex’s business model is based on purchasing advertising space from publishers such as YAHOO, Outbrain, Verizon-Oath, Google and more. Cortex employs about 19 people in its offices in Tel Aviv.

Gix reported that according to Cortex’s financial statements for the first half of 2021, its revenues amounted to approximately $13.5 (NIS 43 million), an increase of 53% compared to its revenues in the first half of 2020, and Cortex’s operating profit for the first half of 2021 amounted to approximately $1.3 (NIS 4.2 million), an increase of 121% compared to the first half of 2020.

During the third quarter of 2021, Cortex continued to present an impressive growth, with revenues amounting to approximately $12.5 million (NIS 40 million), an increase of 92% compared with revenues in the corresponding quarter last year. Operating profit in the third quarter of 2021 amounted to approximately $1.4 million (NIS 4.5 million), an increase of 44% compared to the operating profit of the third quarter of 2020.

Cortex’s financial results will be consolidated with Gix’s financial statements, as of the acquisition date and are expected to contribute significantly to Gix’s consolidated results for 2021.