Business
Acquisition of BilltoMobile
Acquisition of BilltoMobile.
About this update from Bango Plc
[{"type":"text","content":"\n \nRNS Number : 5801X Bango PLC 09 May 2016 \n\nBANGO PLC\n(\"Bango\")\n \nAcquisition of US Carrier Billing Service BilltoMobile\n \n- App stores and operators gain Bango Boost technology to accelerate End User Spend growth in US\n- Acquisition adds $80m (£55m) annual US-based End User Spend to the Bango Payment Platform \n \n \nBango (AIM: BGO), the mobile payments company, announces that it has acquired BilltoMobile, the US-based carrier billing services of Danal Inc. for an initial consideration of $3.5m (£2.4m), comprising $3m (£2.15m) in cash, to be paid immediately, and $500,000 (£345,000) in Bango shares at an issue price of 60 pence. Deferred consideration, which is expected to be $35,000 (£25,000), may become payable in cash in Q1 2017 depending on the performance of one revenue stream. In addition, Bango will pay certain fees in connection with the acquisition which are expected to be $215,000 (£150,000) and relate to the migration of services from Danal. BilltoMobile services processed approximately $80m (£55m) of End User Spend (EUS) in 2015, making it the largest carrier billed payments processor in the US by volume. \n \nThe acquisition enables app stores and major US-based merchants to take full advantage of Bango Boost technology in the high value North American market. \n \nBilltoMobile is currently the only operator service integrated into all four major US Mobile Network Operators (MNOs), covering over 300 million connections. It processes carrier billing payments for app stores and major merchants including Google Play and Microsoft.\n \nIn the past year, MNOs that have adopted Bango Boost technology have gained between 20% and 70% further growth in revenue. Partners previously using BilltoMobile services now have the opportunity to apply this Bango technology to substantially grow their carrier billing revenues in the US.\n \nBango is the leading supplier of carrier billing for the global app stores, and has achieved significant success growing revenues for its partners worldwide using unique Bango technology. EUS grew by more than 100% over 2015 and is expected to grow more than 100% over 2016, before the added EUS from this acquisition. The migration of BilltoMobile services to the...