Velti acquires Mobile Interactive Group for $25M
Mobile marketing technology provider Velti has reached an agreement to acquire U.K.-based marketer Mobile Interactive Group. Velti will cough up a minimum consideration of $25 million, including $20 million in cash at closing--based on MIG's performance, Velti could pay as much as $34 million more by 2013, applying a 7.5 times adjusted EBITDA multiple to measure 2011 and 2012 performance.
Mobile Interactive Group offers mobile marketing, m-commerce and billing services spanning 44 countries worldwide, touting more than 300 enterprise customers including Skype, O2, PepsiCo, BBC and Sony. In addition, broadcasters in Europe and Asia leverage the firm's platform to deliver real-time mobile social media interactions. MIG generated more than $20 million in net revenues in 2010; its management team will continue to operate the business after the Velti deal wraps up early next year.
Velti's mGage platform promises brands, agencies, publishers and operators a one-stop shop to roll out targeted promotions that run across applications and the mobile web. Customers include AT&T (NYSE:T), Vodafone and Johnson & Johnson. Velti went public in late January, raising about $150.2 million in its U.S. stock market debut. The MIG deal follows two months after Velti acquired mobile CRM solutions provider Air2Web for $19 million.
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