MobiVentures Inc. , an international provider of high quality mobile
applications, content and services today announced that it has entered
into a definitive agreement to acquire Purepromoter Limited ("Pure"), a
U.K.-based global provider of e-mail and SMS marketing solutions in 40
countries, for $7.8 million. The acquisition is expected to close by
the end of April.
Pure, founded in 2002, provides powerful, low cost e-mail,
multimedia messaging (MMS) and text messaging (SMS) marketing campaigns
to businesses and agencies, including clients such as Emap, The FT,
Economist Conferences, Littlewoods, ultimatepoker.com and innocent
drinks. Through its agency channel, Pure works with companies including
Halifax, Barclaycard, Levis Europe, Pepsi, O2, Red Bull and Starbucks.
The company had revenues of $2.8 million for the fiscal year ended
March 31, 2007, which is expected to exceed $4.1 million for the year
ended March 31, 2008, a year-over-year increase of approximately 50%.
These revenues are up from $1.1 million in fiscal 2006 and $430,000 in
fiscal 2005. The operating income at fiscal year-end 2007 was $670,000
and is expected to exceed $1.1 million for the year ended March 31,
2008.
In connection with the acquisition of Pure, MobiVentures has
arranged $2 million in financing from Trafalgar Capital Specialized
Investment Fund in the form of convertible debentures to fund the
acquisition.
Nigel Nicholas, chief executive officer of MobiVentures, commented,
"Pure has done a great job of penetrating the global market with a
variety of electronic marketing solutions, and its growing customer
base, which now totals approximately 700 businesses of all sizes, is
evidence of the quality service it provides. The number of mobile
subscribers is growing significantly around the world through
innovation in the creation and delivery of content on mobile devices.
Pure takes the process one step further in email messaging by measuring
results, an extremely valuable program component for clients who need
to assess the effectiveness of dollars spent on their marketing
campaigns."
Mr. Nicholas continued, "The acquisition of Pure has a number of
important advantages, including its recurring revenue stream,
augmentation of our distribution capabilities, a talented and
experienced staff and significant cross-selling opportunities of
turnkey marketing solutions. MobiVentures plans to leverage Pure's
customer base to sell and market our mobile applications, while Pure
will benefit by offering its existing and new customers a broader suite
of services available through our earlier acquisition of Move2Mobile.
Our goal is to accelerate our profitability through our expanded
distribution, product and service offerings. We expect the combined
companies to continue to generate positive cash flow by achieving
strong operating leverage in the combined businesses."
Stuart Hobbs, Managing Director for Pure, stated, "MobiVentures has
been very successful in creating industry leading mobile marketing
applications and multi-media content as well as establishing
relationships with over 150 worldwide distributors. A large portion of
our current sales are derived from email messaging campaigns, providing
us an ideal customer base to leverage MobiVentures' expansive suite of
mobile marketing applications. Although mobile marketing campaigns are
still in the early growth phase, the leaders of tomorrow will be those
that recognize this opportunity and capitalize on it. By combining
forces with MobiVentures, and gaining access to their expansive
distribution channels, MobiVentures is very well positioned to become
one of those pioneer companies."
Mr. Nicholas concluded, "We had previously announced the signing of
a definitive agreement to acquire Move2Mobile, the UK's foremost
wireless business incubator and accelerator, and we are pleased to
report that we have completed the transaction. Our goal now is to
rapidly and seamlessly complete the integration of Pure and benefit
from the immediate synergies of our combined companies. We look forward
to aggressively pursuing similarly accretive and complementary
acquisitions over the next 12-18 months."
Further terms of the Pure acquisition, additional information
regarding Move2Mobile and the terms of the debentures are outlined in
the Form 8-K filed on April 4, 2008.
About MobiVentures
MobiVentures Inc. is an established provider of leading edge
multi-media mobile content and services, with clients across the UK,
Europe, Asia and North America. MobiVentures acquires and consolidates
growing companies that operate within the mobile content and service
industry. Through the combined scale and resources, MobiVentures seeks
to accelerate growth and time to market for its portfolio companies and
their respective products, which stand to immediately benefit from the
company's broad content array, international distribution channels and
strategic alliances.
About Purepromoter Limited
Pure offers a complete and flexible software solution to add power
to email marketing and SMS advertising: PureResponse. Pure helps its
clients develop the most effective way to display their email marketing
message, and ensures its clients get the highest send rates and lowest
number of opt-outs. Additional information about the company is
available at: www.pure360.com.
About Move2Mobile
Move2Mobile is the UK's foremost wireless business incubator and
accelerator. Established in mid-2002, Move2Mobile provides services to
a range of businesses from start-up entrepreneurs through to
established companies wishing to accelerate and grow their business.
Move2Mobile's primary focus is helping businesses by providing
management, financial, commercial and other support to selected
start-up and early stage ventures in wireless and mobile related
industries. Move2Mobile is well positioned to capitalise on its niche
position as UK's foremost accelerator for early stage wireless and
mobile related companies.
Statements about MobiVentures' future expectations and all other
statements in this press release other than historical facts are
"forward- looking statements" within the meaning of section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, and as the term is defined in the Private Litigation Reform Act
of 1995. MobiVentures' actual results could differ materially from
expected results. MobiVentures undertakes no obligation to update
forward-looking statements to reflect subsequently occurring events or
circumstances. The forecasted revenues and other financial information
for Pure Promoter for its fiscal year ended March 31, 2008 are
projections based on guidance provided by management of Pure Promoter.
These projections are forward looking statements that are subject to
contingencies associated with the business of Pure Promotor. There is
no assurance that these projections will be achieved. Accordingly,
investors should not place undue reliance on these forward looking
statements.