Mobile VAS solutions company IMIMobile today said it has acquired mobile messaging firm TextLocal for 11 million pound (about Rs 107 crore or USD 17.5 million) in a mix of cash and equity.
Founded in 2005, TextLocal reported revenue of 7 million pound and profit after tax of one million pound for the year ending November 30, 2013, IMIMobile said in a statement.
Based out of Chester and Malvern in the UK, the firm has served over 120,000 businesses including customers such as Debenhams, Paddy Power, Greenpeace, Groupon and P&O Ferries, it added.
"Initial consideration of 10 million pound in cash and 1 million pound by way of IMI shares. There is a deferred consideration of up to 2.15 million pound," IMIMobile said.
The acquisition is expected to enhance IMIMobile's earnings with effect from the second half of the year ending March 31, 2015, it added.
SMB mobile messaging market is projected to be one of the fastest growing segments and TextLocal's platform will form an essential element of IMImobile's mobile engagement product portfolio to capitalise on this trend.
"The acquisition will allow us to target small and medium sized business segment that we don't currently serve and expand our cloud based mobile messaging offering. We will be integrating TextLocal into the Group over the next six months," IMImobile CEO Jay Patel said.
