Wameja Di Regulatory News (WJA)

23 Feb 2007 12:48

eServGlobal Limited23 February 2007 eServGlobal Announces Acquisition of Assets of Empower Interactive Group Limited. Sydney 23 February, 2007 eServGlobal Limited (ASX: ESV and LSE: ESG), a worldwide supplier oftelecommunications Value Added Services solutions for Messaging and Charging,today announced the acquisition of the assets of Empower Interactive GroupLimited (EIG). EIG supplied mobile messaging solutions to telecommunications operators aroundthe world, its clients including 7 operators in one of the world's largestMobile Communications groups and also several major carriers in South East Asia.Products developed and supported by EIG included a Messaging Service andDelivery Platform which enables the delivery and charging of 3rd party contentand applications via SMS and MMS; and a Message Storage & Retry system for SMSand MMS. Founded in 2000 and financed by Venture Capital, EIG did not reachprofitability. It achieved audited turnover of £9,098,845 in the yearto 31 December 2005 and a loss after tax and finance costs of £2,762,953. Contracted maintenance revenue in 2005 was above £900,000. Losses increased in 2006 and the company was placed into administration on 24 November, 2006. eServGlobal has paid £500,000 for the assets of EIG. These assetsinclude intellectual property, source code, computer equipment, customercontracts and approximately £300,000 of current receivables. eServGlobal's Executive Chairman and CEO, Mr Ian Buddery, said, "Empower has aproduct suite which is complementary to eServGlobal's messaging offering and weshare many important customers. However, they employed over 120 staff in the UK,a cost base inappropriate for the scale of their revenue. We expect to employ asmall number of the former engineering staff but otherwise absorb the sales,product development and customer support activities into our existingorganisation. We intend to further develop the products and support thecustomers. We expect that the cost of the acquisition to be fully recoveredwithin one year and that the products and services acquired will produce ongoingprofit and positive cashflow." About eServGlobal eServGlobal (LSE: ESG & ASX: ESV) solutions enables Service Providers tomaximize today's proven revenue streams whilst ensuring service continuity andnew revenue opportunities when evolving to next generation networks. Over 75 ofthe world's leading telco's are taking advantage of eServGlobal's advancedsolutions and expertise to successfully address their business challenges and tomanage over 120 million mobile subscribers. As a global solutions provider, eServGlobal helps Carriers and Service Providersby providing turnkey solutions and enabling Multimedia Intelligent Servicesbuilt on a network-independent, open and real-time architecture. All products are designed for fixed, mobile and NGN/IMS infrastructure:ChargingMax (Prepay to Convergent Charging), Top UP Suite (Voucher to E-RetailerManagement), M@ilis (SMS Call Notify to Voice&Video Mail), MessageMax (from SMSDirect Routing to SMS Anti-Fraud), Mobility Suite (Location-based & PresenceServices) and INMax (VPN, Number Portability, Service Numbers, etc). More information can be found at: www.eservglobal.com Ian BudderyExecutive ChairmaneServGlobal Limited This information is provided by RNS The company news service from the London Stock Exchange