Business
Mobilemode Acquisition
Mobilemode Acquisition.
About this update from Gana Media Group Plc
[{"type":"text","content":"\n Mobile Streams plc\n14 July 2006\n\n\n Mobile Streams acquires Mobilemode to extend Asia Pacific business\n\nMobile Streams Plc, ('Mobile Streams' or 'the Company') the global mobile media\nspecialist, is pleased to announce it has reached agreement to acquire the\nmobile entertainment group Mobilemode Limited ('Mobilemode'). Founded in 1999,\nMobilemode delivers mobile entertainment content and services to mobile phone\noperators and portals in the Asia Pacific region.\n\nThe acquisition of Mobilemode will give Mobile Streams a comprehensive position\nin Asia Pacific, with a particularly strong focus on Australia, New Zealand,\nMalaysia, Singapore and Hong Kong. In addition, the acquisition will offer\nMobile Streams the immediate benefit of Mobilemode's experienced management\nteam, and their strong relationships with portals and mobile network operators.\n\nMobilemode's key network operator customers are SingTel-Optus, Virgin Mobile and\nHutchison 3G in Australia, SingTel and M1 in Singapore and Maxis and Astro in\nMalaysia. Mobilemode also has strong distribution relationships with eBay,\nElectronic Arts, Nokia and Discovery Networks, an affiliate of Liberty Media,\nMobile Streams' strategic investor.\n\nMobilemode's management team has worked in Asia for many years and will be\ninvaluable in supplementing Mobile Streams' existing business in the region. The\ntwo founding members of Mobilemode, Jarno Salmivuori, CEO and Norma Salmivuori,\nVice President Business Development, will assume management positions within\nMobile Streams' Asia Pacific business unit.\n\nFor the year to 31 March 2006, Mobilemode recorded turnover of €1.1m and profit\nbefore tax of approximately €48,000. Net assets acquired will be approximately\n€273,000. The transaction is expected to be earnings neutral in the year to 31\nDecember 2006 and earnings enhancing from the first full year following\ncompletion.\n\nThe consideration for the acquisition will be satisfied through the payment of\n€1m in cash and the issue of 1,537,736 ordinary shares in the Company. A further\ndeferred consideration may be payable in cash or shares (at the discretion of\nMobile Streams) based on the achievement of 2007 profitability targets. The\nmaximum total consideration of the deal is €8m. The value of any shares issued\nto satisfy any deferred consideration ...