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RNS Number : 7640T
Mobilewave Group PLC
12 December 2011
12 December 2011
MobileWave Group plc
("MobileWave" or the "Company")
Acquisition of Ariose Software Pvt Ltd
MobileWave the AIM-listed, global mobile marketing, loyalty and
technology company, today announced it has entered into a
definitive agreement to acquire Ariose Software Pvt Ltd ("Ariose"),
one of India's leading companies providing solutions, software and
services in the mobile and telecom industries (the
"Acquisition").
The Acquisition is subject to customary closing conditions and
will result in MobileWave acquiring 100% of the issued share
capital of Ariose.
Background to and reasons for the Acquisition
Ariose was founded in 2006 and has developed 120 mobile
solutions and achieved just over one million app downloads. With
more than 100 customers across leading Value Added service
providers, ecommerce companies and enterprises like One97, Hungama,
Nazara, Snapdeals, Manupatra, Ariose solutions are used across
enterprise (mobile field reporting, field staff automation and
utilities), consumer (entertainment, infotainment and healthcare),
location based solutions (navigation, deals and store locator) and
mobile commerce (mobile payment and retail). Ariose solutions, apps
and products are used in the banking, marketing, payments,
publishing, retail, shopping, security, social networks, token and
travel industries.
Significantly for MobileWave, whose core function is providing
brands with a flexible and secure platform to deliver
customer-focused campaigns, Ariose also has its own proprietary
intellectual property that will be incorporated into MobileWave's
enterprise mobility platform. Drawing on its expertise in this
area, Ariose is currently working with MobileWave to develop and
refine MobileWave's own platform to deliver a world-leading
business-to-customer mobile relationship management platform that
will facilitate companies' customer-engagement and retention
strategies.
The Acquisition marks a significant strategic move for
MobileWave for two reasons; firstly, Ariose allows MobileWave to
bring in-house technical expertise and skills, with the Company
gaining a team of 40 technical engineers who will add significant
value to the development of our platform. Secondly, MobileWave's
leadership team will be reinforced by Ariose's management team, who
not only bring with them customers, but importantly will remain in
place and work together with MobileWave's senior team to extract
significant value from this, and future acquisitions.
Terms of the Acquisition
-- MobileWave will acquire 100% of the issued share capital of Ariose;
-- The maximum possible consideration payable is US$ 1,200,000;
-- The purchase price is payable in four payments, the first,
due 5 days after closing, will be US$ 450,000 in cash and
MobileWave Convertible Preference Shares equal in value to US$
450,000. The balance of the purchase price is payable over a three
year earn out period;
-- The two Ariose co-founders Amit Goenka and Sudhi Agarwal, who
were majority shareholders, will remain with the Company as,
respectively, Managing Director and Chief Technical Officer of
Ariose, both having entered into service agreements; and
-- In the financial year ending 31 March 2011 Ariose generated
revenue of INR 11,757,326. The business is profitable, has
customers and its own proprietary intellectual property and an
experienced team of engineers and developers.
Rory Stear, Executive Chairman, MobileWave Group plc commented:
"We are delighted to have completed the Acquisition of Ariose.
Ariose has a strong track record of developing effective and
relevant mobile solutions, including India's largest on-line
e-commerce portal and the largest and most comprehensive on-line
legal and business policy database, as well as being the first
company to develop mobile payment across various platforms. As
such, this partnership provides a significant growth opportunity
for MobileWave, setting us on the right path to our goal of
becoming the leading global mobile relationship management and
solutions partner of choice."
Amit Goenka, Co-founder and CEO, Ariose Software Pvt Ltd
said:
"MobileWave is enabling us to expand our horizons and our
footprint. Ariose's management team has a good understanding of
international markets having spent a number of years working in
Silicon Valley and we now look forward to benefitting from the
significant business development and marketing expertise within
MobileWave's senior management team.
- Ends -
For further information, please contact:
Caroline Hole-Jones 01225 318000
The Splash Partnership caroline.hole-jones@tsplashp.com
MobileWave Group plc rstear@mobilewave.com
Rory Stear, Chairman
Charles Stanley Securities 020 7149 6000
Nominated Adviser & Broker carl.holmes@csysecurities.com
Dugald J.Carlean / Carl Holmes
This information is provided by RNS
The company news service from the London Stock Exchange
END
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