iTouch acquired by Buongiorno

News

Stuart O'Brien Jul 3 2007, 8:15am

Buongiorno has bought 100 per cent of iTouch for 141 million euros.

Under the terms of the deal Buongiorno will pay 129 million euros to iTouch shareholders and will absorb the company's 12 million euros of net debt.

The consideration will be satisfied partly in cash and partly in new Buongiorno shares to be issued to iTouch shareholders in exchange for iTouch shares.

Buongiorno now has more than 1,100 staff in 20 countries, delivering services in more than 40 countries.

iTouch de-listed from the LSE in June 2005 following the acquisition of the company by For-side.com in Japan for £184 million and prior to the todays deal was privately owned following a management buyout in February.

Investors in iTouch include Oak Investment Partners, with 40 per cent of the ordinary shares and Goldman Sachs with 20 per cent, as well as the management team.

All three will now become iTouch shareholders.

Buongiorno founder and chairman Mauro Del Rio said: "Given its global presence, diversified product portfolio and complementary channels, the combined entity will be in a very strong position to benefit from the significant expected market growth in the mobile value added services sector."

The deal signals the ongoing consolidation of the direct-to-consumer space following LatNetro Zed's purchase of a majority stake in Monstermob in February.