Digital River buys Element 5

Filed in archive Venture Capital on May 3, 2004

A nice exit for Earlybird and 3i as Element 5 has been acquired for $120 million in cash by Digital River. The Cologne based Element 5 supplies ecommerce and digital download backbone for software publishers.

"So when you download antivirus or tax preparation software, say, chances are, Digital River or Element 5 is doing the online donkey work in the background. Element 5 claims 10,000 customers in more than 150 countries and derives 60 per cent of its revenues from outside the US. Digital River gets 70 per cent of its turnover from the US."