Jump Networks Ltd, which provides digital services to low-bandwidth mobile phone users, will acquire an 18% stake in mobile value-added services provider OnMobile Global Ltd.
Mumbai-based Jump Networks will buy the stake in OnMobile Global from its parent OnMobile Systems Inc. Jump Networks will buy 1.9 crore shares of OnMobile Global at a price between Rs 75.50 and Rs 78 apiece, the two companies said in stock-exchange filings.
This means the deal value would be between Rs 1,434.50 crore and Rs 1,482 crore (about$200-207 million at current exchange rates).
Shares of Bengaluru-based OnMobile Global jumped 20% on Monday to touch Rs 39.30 apiece in a weak Mumbai market. Shares of Jump Networks fell 0.5% to Rs 55 apiece.
OnMobile Global said its product portfolio and its relationships with mobile operators will fit well with the technological framework of Jump Networks.
The companies expect the sale to be completed within 75 days. The deal is subject to the terms set out in the share purchase agreement signed between the two companies.
Established in 2000, OnMobile says it delivers over 575 million daily music plays to its mobile customers worldwide. The company claims it has a base of more than 1.68 billion users across several countries. Its consumer-based services are offered under the ONMO brand name, which the company launched in October 2016.
Jump Networks, which was previously known as Iris Mediaworks Ltd, says it provides its services to the under-served sections of society. The company says its ‘Jumpnet’ ecosystem integrates a physical and digital network offering that allows for the delivery of content and services on networks with sub-optimal bandwidth.