Benzinga | Aug 18, 2021 11:29AM EDT

Mercadolibre To Acquire $25M Stake In Digital Media Agency Aleph

* Latin American e-commerce and fintech company Mercadolibre Inc (NASDAQ:MELI) has agreed to acquire a $25 million stake in the digital media company Aleph Group.

* CVC Capital Partners Fund VIII recently acquired a minority stake in Aleph for $470 million valuing the company at $2 billion.

* MercadoLibre will collaborate with IMS Internet Media Services on monetizing advertising space on its digital properties in countries where it does not have local sales operations.

* MercadoLibre and Aleph will also collaborate in new business development opportunities in digital advertising.

* Mercadolibre expects to close the transaction by August end.

* Aleph operates in Latin America through IMS Internet Media Services.

* Mercadolibre held $1.43 billion in cash and equivalents as of June 30, 2021.

* Price Action: MELI shares are trading higher by 1.25% at $1790.00 on the last check Wednesday.