Medigus: Gix Completed Acquisition of Leading Media-Tech Company Cortex Group for Approximately $11 Million
October 14 2021 - 7:57AM
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.
About Medigus
Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is
a technology company focused on innovative growth partnerships,
mainly in advanced medical solutions, digital commerce and electric
vehicle markets. Medigus’ affiliations in the medical solutions
arena include ownership in ScoutCam Inc. and Polyzion Ltd. The
Company’s affiliates in digital commerce include Gix Internet Ltd.,
Jeff’s Brands Ltd. and Eventer Technologies Ltd. In the electric
vehicle market, Charging Robotics Ltd. and Revoltz are also part of
the Company’s portfolio of technology solution providers. To learn
more about Medigus’ advanced technologies, please
visit http://www.medigus.com/.
Cautionary Note Regarding Forward
Looking Statements
This press release may contain statements that
are “Forward-Looking Statements,” which are based upon the current
estimates, assumptions and expectations of Medigus’ management and
its knowledge of the relevant market. The company has tried, where
possible, to identify such information and statements by using
words such as “anticipate,” “believe,” “envision,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,”
“potential,” “will,” “would,” “could,” “should,” “continue,”
“contemplate” and other similar expressions and derivations thereof
in connection with any discussion of future events, trends or
prospects or future operating or financial performance, although
not all forward-looking statements contain these identifying words.
These forward-looking statements represent Medigus’ expectations or
beliefs concerning future events, and it is possible that the
results described in this press release will not be achieved. By
their nature, Forward-Looking Statements involve known and unknown
risks, uncertainties and other factors which may cause future
results of Medigus’ activity to differ significantly from the
content and implications of such statements. Other risk factors
affecting Medigus are discussed in detail in Medigus’ filings with
the Securities and Exchange Commission. Forward-Looking Statements
are pertinent only as of the date on which they are made, and
Medigus undertakes no obligation to update or revise any
Forward-Looking Statements, whether as a result of new information,
future developments or otherwise. Neither Medigus nor its
shareholders, officers and employees, shall be liable for any
action and the results of any action taken by any person based on
the information contained herein, including without limitation the
purchase or sale of Medigus’ securities. Nothing in this press
release should be deemed to be medical or other advice of any
kind.
Company Contact:
Tali DinarChief Financial
Officer+972-8-6466-880ir@medigus.com
Investor Relations Contact:Miri SegalCEOMS-IR
LLC+1-917-607-8654msegal@ms-ir.com
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