Update: Do read our interview with ActiveMedia MD Raj Singh on the companys plans for India.
AIM listed 2ergo Technologies has acquired ActiveMedia Technology, a UK based VAS company with mobile marketing and VAS operations in India. Earlier this year, ActiveMedia had joined 2ergo’s Business Partner Programme. 2ergo is a mobile platform service provider: it’s core technology platform integrates voice, data, text, email, video and mobile internet channels.
This is the second mobile marketing acquisition in India, in recent memory, with Mobile2Win India being acquired by Altruist earlier this year.
2ergo will pay an initial cash amount of GBP 179,000 (approximately $295,350 or Rs. 1.422 crores at current rates). The balance payment will be calculated as 4 times India PAT (profit after tax), and 2.8 times UK Operating Profit from the year to 31st August 2012, payable between November 2009 and November 2013, dependent on ActiveMedia achieving agreed levels of financial performance, and subject to an overall cap. According to 2ERGO, “the consideration will be settled, at the discretion of 2ergo, by the issue of new 2ergo ordinary shares, or loan notes, to the vendors.”
The State Of ActiveMedia
ActiveMedia Technologies – the UK & Indian operations combined – was profitable with a profit before tax (PBT) of GBP 229,000, and sales of GBP 1,190,000 in its last reported results. The company had estimated net assets of GBP 550,000 at completion. The company employs 50 people overall, in offices in London, New Delhi and Mumbai.
Ramesh Krishnan, former VP (Global Channel Sales) at Comviva Technologies joined AMT India as COO. AMT India is a wholly owned subidiary of AMT UK, and has clients including Proctor & Gamble, ABN AMRO, ING, Monster, Hyundai and Western Union, and has relationships with Airtel, Tata Teleservices, Vodafone, Reliance and Idea. AMT India manages the short codes 53636 and 52455, and focuses on mobile marketing, among other VAS services.
The London business focuses on Mobile couponing and ticketing. AMT was the first to commercially launch a mobile couponing/CRM solution in Europe, and is the technology provider behind what is claimed to be the longest running and most sucessful mobile marketing campaign in the UK: “Orange Wednesdays”.
The acquisition, according to Chris Brassington, group Managing Firector of 2ergo, gives the company an operation in India, as a part of its global expansion into BRIC countries. 2ergo had acquired Broca in April this year for its patented secure end-to-end communication protocol for mobile and wireless data applications, and Australian company Wapfly Technologies for mobile applications and mobile Internet sites.
With Wapfly and ActiveMedia, 2ergo has got market entry into India and Australia, while Broca allows the company to provide security solutions for m-banking, m-commerce and secure m-payments. 2ergo’s international presence spans Europe, North America, Latin America, and Australia. 2ergo was debt free with cash reserves of GBP 9.6 million, with revenues of GBP 11,170 and gross profit of GBP 4,859 for the six months ending February 28th 2009.
Note: we’ll have more from Raj Singh, Director, ActiveMedia tomorrow. In case you have any questions, please leave a comment, or mail nikhil at medianama dot com