US-based Velti has invested in the UK through the acquisition of Mobile Interactive Group (MIG), a company which provides mobile marketing.
US-based Velti has invested in the UK through the acquisition of Mobile Interactive Group (MIG), a company which provides mobile marketing.
The deal, which is worth $25 million (£16.3 million), brings to Velti a business which was named the fastest growing privately owned technology firm in Europe by accountancy firm Deloitte.
London-headquartered MIG supplies mobile marketing, mobile commerce and mobile billing services in 44 countries and has operations in four other nations. It has customers including Skype, O2, PepsiCo, BBC and Barclaycard.
Alex Moukas, chief executive officer of San Francisco-based Velti, comments: ‘This acquisition 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.’
The deal structure sees an initial $25 million ($20 million in cash) paid on completion. Velti may pay up to an additional $34 million by 2013, using a multiple of 7.5 times EBITA measuring 2011 and 2012 performance.
As part of the transaction MIG’s management is to join Velti’s global management team but will continue to run the business.
Barry Houlihan, chief executive officer and founder of MIG, adds: ‘The complementary strategic capabilities, geographic footprint and innovative customer solutions of our two companies create a global mobile marketing powerhouse.
‘Velti will drive significant economies of scale and innovation for our existing customers.’
