Germany’s Axel Springer and United Internet have agreed to merge their rival affiliate network subsidiaries, Awin and Affilinet, to form one global affiliate network. The funds involved in the deal remain undisclosed.

Upon completion of the transaction, Axel Springer will own 80 per cent of the Berlin-headquarted company and United Internet 20 per cent, with Affilinet rolling into Awin. In addition, prior to the transaction, Axel Springer will take over the 47.5 per cent Awin shares currently owned by Swisscom.

“This is an exciting time for both of our companies and the industry as a whole,” said Mark Walters, CEO of Awin, who will continue to lead the company. “Affiliate marketing is attracting a new wave of publishers from social and traditional media who are driving growth in the channel. Combining forces with Affilinet will enable us to shape the industry of the future for all our partners.”

With the deal, Awin will broaden the reach of affiliate marketing, and hopes it will create the ‘ideal conditions’ for an IPO (initial public offering).

Last month, Awin made a strategic investment in influencer marketing platform Tailify, with the aim of expanding its influencer reach and fostering collaboration.