In one of the largest deals in the Mobile VAS space in India this year, Mobile VAS company Lifetree Convergence has been acquired by Tecnomen, a Finnish supplier of messaging and charging solutions for telecom operators, for EUR 33.2 million (around $44 Million). Tecnomen CEO Jarmo Niemi will be the CEO of the combined entity Tecnomen Lifetree, while Atul Chopra, MD and CEO of Lifetree will be its COO and President. Lifetree is headquartered in New Delhi,and has software development centers in New Delhi and Bangalore. The company has around 400 employees. They provide operational support systems and business support systems software, as well as content management and delivery platforms. Before Buongiorno took over from them, Lifetree used to power Indiatimes' 8888 service. African telcom operator MTN is among their biggest clients. The Deal We're told that Lifetree was looking to raise funds, and ended up being acquired. Tecomen will take 96.6% stake in Lifetree Convergence for EUR 21.4 Million in Cash and EUR 11.8 Million in Tecnomen shares. The payout is being financed, in part, with a long term loan, and own funds. The Tecnomen shares will be issued to the management of Lifetree, subject to a 3 year lock-in period. The International Finance Corporation, a Lifetree shareholder, will become a shareholder in Tecnomen holding about 6.17% shares and 5.65% on a fully diluted basis. Lifetree Financials (at Rs. 63 to the Euro) -- For the financial year ending March 31st 2008: Lifetree reported net sales of EUR 11.3 million, profit…
