SOURCE: The Carlyle Group
December 11, 2007 09:00 ET
The Carlyle Group and H.I.G. Ventures Make $20 Million Investment in REVShare
A Pioneer in Results-Based Advertising, REVShare Provides Unique Bid Technology for Television Industry
WASHINGTON, DC--(Marketwire - December 11, 2007) - Global private equity firm The Carlyle Group
and H.I.G. Ventures today announced they co-led a $20 million investment in
REVShare, an exchange that allows advertisers to bid for television time on
a Cost-per-Action (CPA) basis (akin to the Cost-per-Click method of web
advertisers), versus the traditional method of charging based on projected
Founded in 1989, REVShare utilizes a proprietary bidding system whereby
advertisers specify a price they are willing to pay per response (i.e. when
someone is prompted to call a toll-free number or visit a website) and the
air time is allocated according to media return on investment (ROI). Under
this system, stations are able to sell their inventory without revealing
the effective rate of their ads, and advertisers are able to pay rates that
are determined by a combination of market forces and response to their ads.
REVShare has been profitable since its founding in 1989 and due to
increased interest from advertisers and television stations has tripled
revenues since 2003. The company has relationships with more than 1,500
English and Spanish local market television stations, cable systems,
syndicators and networks that are willing to provide television time on a
"REVShare's strong technology and results-based approach to advertising has
become a great solution for many media providers," said John Kim, Managing
Director, H.I.G. Ventures. "The experience and expertise of the REVShare
team is impressive and we look forward to working with them to take the
company to the next level."
"REVShare has created an innovative product and a broad network of 1,500
local market television properties that reach over 110 million U.S.
households," said Josh Ofstein, a Carlyle Principal. "Similar to the
Pay-per-Click model that has been so successful on the Internet, REVShare
delivers a performance-based solution to advertisers, which we believe has
tremendous growth potential."
"Carlyle and H.I.G.'s global network and media experience will increase
REVShare's ability to attract new customers and rapidly accelerate the
growth of the company," said Joseph Gray, Chief Executive Officer of
Carlyle's share of the investment comes from Carlyle Venture Partners III,
a $605 million U.S. venture and growth capital fund.
RBC Daniels advised REVShare on the transaction.
Founded in 1989, privately held REVShare® specializes in Cost-per-Action
(CPA) television advertising. Reaching 110 million U.S. households,
REVShare has relationships with more than 1,500 combined English and
Spanish local market television stations, cable systems, syndicators, and
networks that are willing to provide television time on a results basis.
With a customer-oriented team, proven client results, state-of-the-art
technology and marketing acumen, REVShare continues to lead the industry in
the evolution of television advertising models to meet the challenges of
the next generation of convergence and interactivity. www.revshare.com
The Carlyle Group
The Carlyle Group is a global private equity firm with $74.9 billion under
management committed to 57 funds. Carlyle invests in buyouts, venture &
growth capital, real estate and leveraged finance in Africa, Asia,
Australia, Europe, North America and South America focusing on aerospace &
defense, automotive & transportation, consumer & retail, energy & power,
financial services, healthcare, industrial, infrastructure, technology &
business services and telecommunications & media. Since 1987, the firm has
invested $37.6 billion of equity in 734 transactions for a total purchase
price of $212.8 billion. The Carlyle Group employs more than 990 people in
21 countries. In the aggregate, Carlyle portfolio companies have more than
$87 billion in revenue and employ more than 286,000 people around the
H.I.G. Ventures partners with entrepreneurs to provide the capital,
expertise and relationships necessary to build market-leading businesses.
With over $550 million in dedicated venture and growth capital under
management, the firm's team invests nationally in early to later-stage
information technology, life science and service businesses. H.I.G.
Ventures is the venture capital affiliate of H.I.G. Capital, a leading
private equity investment firm with over $4 billion of capital under
management. H.I.G. Ventures has offices in Atlanta, GA and Miami, FL.