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IMImobile acquires mobile messaging platform TextLocal for around £13.15M

AIM-listed IMImobile has acquired UK-based mobile marketing & communications company TextLocal for approximately £13.15 million. This includes £10 million in cash and around £1 million worth of IMImobile shares (707,564 shares at a price of 141.33p per share). There is also provision for an additional deferred consideration of a maximum £2.15 million split over two years, that will be shared amongst TextLocal's founders and senior management. TextLocal provides text messaging services and bulk SMS marketing solutions targeted at small and medium sized businesses. The company claims that these solutions have been used by more than 100,000 businesses since its inception on 2005. Besides text messaging, it also allows businesses to create customized mobile tickets, vouchers & loyalty cards, mobile forms & surveys and mobile webpages among others. Post acquisition, IMImobile will be integrating TextLocal's messenger platform to its core infrastructure in order to strengthen its mobile engagement product suite. IMImobile CEO Jay Patel mentions that this acquisition will give them access to a substantial new client base comprising small and medium sized businesses and provides them opportunities to cross-sell their offerings to these businesses. Rolling out TextLocal to new markets: Patel added that they also plan to make use of its global distribution and operator relationships to introduce TextLocal's offering into new international markets. The company plans to integrate this platform over the next six months and it expect this acquisition to improve the group's earnings from second half of the current financial year (ending 31 March 2015). TextLocal revenues: TextLocal reported total revenues of £7 million and a profit after tax of £1 million for the year ending 30 November 2013. IMImobile mentions that TextLocal is debt free…

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