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Velti Acquires Mobile Interactive Group

Velti plc, the leading mobile marketing and advertising technology provider for brands, advertising agencies, mobile operators and media, announced the acquisition of Mobile Interactive Group (“MIG”), the UK’s largest mobile marketing company. The acquisition expands Velti’s lead as the world’s largest mobile marketing company based on revenue, customers, consumer reach and technology holdings.

With more than $100 million in gross billings, more than $20 million in net revenues in 2010, and more than 160 employees MIG has established itself as a leading mobile marketing player. The company’s global partnership with Skype, its Facebook Preferred Developer Consultant status and the launch of its mobile / broadcast interactive platform have won MIG accolades as a pioneer in bridging social media, mobile marketing and commerce transactions. Earlier this year, Deloitte named MIG the fastest growing privately owned technology firm in Europe.
MIG offers mobile marketing, mobile commerce and mobile billing services in 44 countries and has operations in the UK, US, Netherlands, Belgium and Australia. The company’s technology platform is used by more than 300 enterprise customers including Skype, Vodafone, O2, PepsiCo, ITV, FIVE, Fremantle, BBC, Sony, Barclaycard, Marks & Spencer and NewLook.MIG’s mobile interactive technology is used by broadcasters in Europe and the Asia Pacific region for real-time social media interactions through the mobile platform.
“The acquisition of MIG combined with the resources of Velti, creates a strong resource for brands, mobile operators and media companies around the world,” said Alex Moukas, CEO of Velti. “This acquisition also solidifies our leadership in mobile marketing, a $16 billion category that many predict will almost double to $30 billion in the next few years. We believe we are very well positioned to take a healthy share of this market and bring unique scale and depth to our partners around the world.” MIG has deployed innovative technology in high growth areas such as real-time mobile and social interactions in addition to mobile/TV interaction, using smart phones but also supporting feature phones. Those solutions can now leverage the best in class Velti infrastructure.
“The complementary strategic capabilities, geographic footprint and innovative customer solutions of our two companies create a global mobile marketing powerhouse,” said Barry Houlihan, CEO and Founder of MIG. “Velti will drive significant economies of scale and innovation for our existing customers.”

Summary of Acquisition Terms and Financial Impact
Velti will pay a minimum consideration of $25 million, including $20 million of cash at closing. Depending on MIG’s performance,Velti may pay up to an additional $34 million over time by 2013, using a multiple of 7.5 times adjusted EBITDA, measuring 2011 and 2012 performance. MIG’s management will join Velti’s global management team and will continue to operate the business. Velti anticipates keeping in excess of $20 million of annualized US GAAP revenue from the acquisition, the majority of which is derived from recurring platform licensing, SaaS usage and performance fees. The transaction is expected to be EBITDA accretive in the first full quarter after closing. MIG is a free cash flow positive business.

 

http://www.velti.com

 

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