Nasdaq listed firm scoops UK rival for $25m to form mobile marketing superpower.
The two firms are both major players in the mobile marketing space, offering brands everything from old-school messaging services to site building, apps, location and proximity marketing and social media integration.
And they've both been on the acquisition trail with Velti buying Air2Web and MIG buying ZayPay and Golden Bytes this year.
Velti describes itself as the world’s largest mobile marketing company based on revenue, customers, consumer reach and technology holdings.
Now it's added to this a firm that reported more than $100 million in revenue and $20 million in net income in 2010.
But it will be MIG's customers as much as its revenues that Velti will cherish. The roll call includes Skype, Vodafone, O2, PepsiCo, ITV, FIVE, Fremantle, BBC, Sony, Barclaycard, Marks & Spencer and NewLook.
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MIG is also a Facebook Preferred Developer Consultant status, and launched a Facebook channel for broadcasters earlier this year that rolls in mobile billing options.
Alex Moukas, CEO of Velti, said: “This acquisition solidifies our leadership in mobile marketing, a $16 billion category that many predict will nearly double to $30 billion in the next few years. We’re definitely well positioned to take a healthy share of this market and bring unique scale and depth to our partners around the world.”
Few saw this deal coming. It doesn't seem to have been whispered about in the trade. However, ME has heard speculation that both firms have been struggling in the downturn and have made redundancies, so maybe a consolidation is not so surprising.
Velti will pay in a minimum consideration of $25 million for MIG, including $20 million of cash at closing. Depending on MIG’s performance, Velti will pay up to an additional $34 million over time by 2013, using a 7.5 times adjusted EBITDA multiple.
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