Route Mobile said that its wholly-owned subsidiary Routesms Solutions FZE has entered into a share purchase agreement (SPA) with the existing shareholders of Interteleco International for Modern Communication Services.
The SPA is for the acquisition of 49% (legal shareholding/effective ownership) of the total outstanding equity share capital, along with additional 41% of economic & beneficial interest (including profits, dividends, voting and distributions) of Interteleco.
Interteleco is engaged in the business of modern communication services and integrated services for mobile communication in Kuwait. Its services include mobile app services, payment solutions, communication services, chatbot, and conversational AI among others. It caters to a variety of industries including telecommunications, financial accounting, inventory management, e-commerce, and project management service companies.
This acquisition will help establish Route Mobile's direct presence in Kuwait and thus augment its business horizons and integrate its business verticals in Kuwait.
The cost of the said acquisition is 652,500 Kuwaiti Dinar (KD). The total purchase consideration will be paid out in two tranches. First tranche, equivalent to 20% of the total purchase consideration, will be paid upon signing of the SPA. The second tranche, equivalent to 80% of the total purchase consideration, will be paid upon fulfillment of all the conditions precedent at the time of closing.
The company expects to close the acquisition within two months from the date of signing of the SPA or such other dates as may be mutually agreed between the parties.
Rajdipkumar Gupta, Managing Director and Group CEO, Route Mobile Limited, said, Route Mobile has been a communication enabler in the GCC, and this acquisition further reinforces our commitment in bringing global personalized communication solutions to businesses in the region.
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Route Mobile is a cloud communications platform service provider, catering to enterprises, over-the-top (OTT) players, and mobile network operators (MNO). RML's portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics, and monetization. The company is headquartered in Mumbai, India with a global presence in the Asia Pacific, Middle East, Africa, Europe, and North America.
The company 's consolidated net profit jumped 27.4% to Rs 34.32 crore on 21.9% increase in net sales to Rs 377.52 crore in Q1 June 2021 over Q1 June 2020.
Shares of Route Mobile fell 2.43% to currently trade at Rs 2249.20 on the BSE.
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