Velti, the NASDAQ listed company which is a global provider of mobile marketing and advertising technology solutions has announced the acquisition of Air2Web, an enterprise mobile marketing and customer relationship management (mCRM) solutions provider operating in India and the United States. According to Velti, following the acquisition, Air2Web’s customers will be able to leverage Velti’s mobile marketing platform , while the deal deepens Velti’s footprint in India through Air2Web.
Financial terms: According to a press statement from the company, Velti has paid $19 million in cash for Air2Web and expects to keep in excess of $12 million of annualized revenue from the acquisition, the majority of which is derived from recurring platform licensing, usage and performance fees.
Financial gains for Velti: Velti anticipates that Air2Web will generate approximately $3 million in revenue and $(1) million in EBITDA during the fourth quarter of 2011 and will become accretive to EBITDA in its first full quarter of consolidation post-acquisition. Velti expects the acquisition to close in the fourth quarter of 2011, subject to certain customary closing conditions, and accordingly intends to consolidate a portion of Air2Web’s quarterly results.
Velti’s Venture with HT-Media: Velti is already present in the Indian market, albeit through a JV with HT Media to offer services related to mobile marketing and advertising – from conceptualizing the campaign to providing the platform for execution, with reporting and analytics. According to HT Media, the investment in the JV is small and Velti is more of a technology provider, while HT provides reach to advertisers. HT Media holds 65% in the venture, although we have been told, that mobile marketing campaigns went live in July 2009, very little is known of how the HT-Velti JV has been doing.
Updates: This article had incorrectly mentioned Velti as being LSE listed. It is listed on NASDAQ