An Amsterdam-based text messaging infrastructure company has been acquired by one of its clients for up to €42 million (£40 million).

An Amsterdam-based text messaging infrastructure company has been acquired by one of its clients for up to €42 million (£40 million).

Telekec acquired mBalance through its Belgian subsidiary for an initial €28 million in cash. An extra €14 million in cash is dependant on the acquired business meeting certain targets over the next two years.

Raymond Fagan, partner at Cavendish Corporate Finance which advised the vendor on the transaction, says mBalance achieved ‘an attractive revenue and profit multiple’ from the deal.

Fagan adds, ‘The transaction draws on the partnership that had been built between mBalance and Tekelec over many years. Tekelec provides an excellent platform for continued growth and development of new products and additional opportunity for the staff of mBalance, within the enlarged organisation.’

Founded in 2001, mBalance has 82 staff and offers services including message routing, message security and a 2G-3G message gateway.