1.6 Million Reasons To Start A Search Marketing Business In A Lounge Room

Tim Macdonald and Zac Asani

By Martin Kelly, Editor, Search Engine Room

THREE years ago, Tim Macdonald and Zac Asani started their search marketing business in a Bondi lounge room using second-hand equipment.

Yesterday they announced the sale of 51% of The Found Agency to Photon Group for just over A$1.6 million.

Macdonald said it was one of three serious offers the company – which now has 15 staff - had fielded in recent times, hinting at the weight of money chasing online opportunities.

“I think pretty much anyone in the Search Marketing space has fielded a couple of emails or phone calls from people trying to get involved,” he said.

“We thought long and hard about it before we came to this decision.

“It’s definitely a market awash with cash but I think this is a very fair price.

“Photon is a company that really believes in the Internet and making things happen.

“We also like to give things a shot and not do it ponderously.”

The fast-moving Photon Group also has an option to acquire the remaining 49% by this September, with performance incentives through to 2010.

Over the past few years it has acquired more than 30 companies and recently reported a half-year net profit of A$6.9 million on revenues of A$85.2 million.

Photon CEO Matt Bailey said: “Found is a well-known brand name and its clients rank well, highlighting the quality of this company and the value they bring to our Group.”

Meanwhile, Macdonald and Asani, who met while working at Fairfax Digital, are still pinching themselves.

“This is really exciting and hasn’t sunk in yet,” Macdonald said.

“We started out as two guys working in a lounge room on old computers complete with second-hand couch and chairs.

“We’ve been very lucky to have some extremely supportive clients who have been prepared to put their faith in us and back us.”