2ergo Group plc, an AIM listed provider of mobile marketing, has acquired UK-based mobile mobile marketing and value-added service provider Activemedia Technologies Ltd (AMT). Activemedia’s wholly-owned Indian subsidiary Active Media Technologies Pvt Ltd, which has offices in Mumbai and Noida, has also been acquired. The deal will give 2ergo access to the Indian market, which is six times the size of UK market in terms of subscribers.
2ergo will initially pay £179,000 with the balance of the consideration be payable between November 2009 and November 2013, dependent on AMT achieving agreed levels of financial performance. This amount will be calculated as 4 times Indian profit after tax and 2.8 times UK operating profit for the year to 31 August 2012, a release by 2ergo said.
The consideration will be settled, at the discretion of 2ergo, by the issue of new 2ergo ordinary shares, or loan notes, to the vendors, it added.
AMT, both UK and India operations combined, had sales of £1.19 million and made a profit before tax of £229,000 in its most recent results. The AMT balance sheet had estimated net assets of £550,000 at completion. AMT provides mobile value added services and solutions,
deploying mobile coupons, vouchers, ticketing and loyalty programmes.
AMT’s technology platform is integrated into mobile phone operators like Airtel, Vodafone, Idea, Reliance and Tata. Some of its clients include British Airways, Blockbuster, Proctor & Gamble, ABN AMRO, ING, Monster, Hyundai and Western Union.
This is 2ergo’s third acquisition this year which are helping the company in its international expansion. It has earlier acquired Broca, which provides communication protocol for mobile and wireless data applications, and Australia’s Wapfly Technologies, which provides mobile internet, applications and marketing solutions.
“We have been looking to invest in one of the BRIC regions for some time and this deal in one of the world’s fastest growing economies provides a platform for further investment and growth for 2ergo in Asia which not surprisingly includes some of the fastest growing mobile phone markets in the world,” said Barry Sharples, Joint CEO of 2ergo Group plc. 2ergo’s customers include O2, ABC Australia, FOX News, Yahoo! and AT&T.
Another recent deal in the mobile services was acquisition of Mobile2Win by Chandigarh’s Altruist Group. Singapore based mobile media company, Affle Holdings, which operates in India through its fully owned subsidiary, Affle India Pvt. Ltd, also sold a 20% stake to Microsoft earlier this year.
Leave Your Comment
9 years ago
ValueFirst Messaging, a Delhi-based mobile messaging services provider, has...
5 years ago
Mobile marketing and advertising technology company Velti Plc has closed the...
5 years ago
Publicis Groupe, a French MNC focused on advertising and communications, has...