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(Alliance News) - Boku Inc on Wednesday announced a USD25 million share placing to part-fund the USD45 million acquisition of Estonia-based billing services provider Fortumo Holdings Inc.
The USD45 million consideration comprises USD37.6 million in cash, around USD2 million in restricted stock units payable to the selling equity holders of Fortumo plus further consideration of up to USD5.4 million in cash.
Fortumo primarily focuses on providing mobile payment solutions to over 400 small-to-medium-sized enterprises, but also services larger merchants including Google, Amazon and Tencent.
The London-based mobile payments platform said the acquisition "will cement the group's positioning as a leading mobile payment and mobile identity solutions company".
Boku also announced a placing to raise gross proceeds of around USD25 million to help fund the acquisition. In addition, the company plans to secure new bank facilities of USD20 million to pay the remaining consideration for Fortumo.
The placing is being conducted through an accelerated bookbuild process being managed by Peel Hunt LLP. Boku said the final number of placing shares at the placing price will be set out in a share placing supplement agreed between Peel Hunt and the company following the bookbuilding process.
"Boku has always grown by a mixture of organic growth and selective acquisition. This deal, which will be our sixth, cements our position as the scale player in Direct Carrier Billing. It brings together the two most profitable players in the industry, with compatible technology, complementary customers and with a great cultural fit," said Boku Chief Executive Jon Prideaux.
Boku shares closed down 2.0% at 90.16 pence on Wednesday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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