Mobilemode Acquisition

14 Jul 2006 07:00

Mobile Streams plc14 July 2006 Mobile Streams acquires Mobilemode to extend Asia Pacific business Mobile Streams Plc, ("Mobile Streams" or "the Company") the global mobile mediaspecialist, is pleased to announce it has reached agreement to acquire themobile entertainment group Mobilemode Limited ("Mobilemode"). Founded in 1999,Mobilemode delivers mobile entertainment content and services to mobile phoneoperators and portals in the Asia Pacific region. The acquisition of Mobilemode will give Mobile Streams a comprehensive positionin Asia Pacific, with a particularly strong focus on Australia, New Zealand,Malaysia, Singapore and Hong Kong. In addition, the acquisition will offerMobile Streams the immediate benefit of Mobilemode's experienced managementteam, and their strong relationships with portals and mobile network operators. Mobilemode's key network operator customers are SingTel-Optus, Virgin Mobile andHutchison 3G in Australia, SingTel and M1 in Singapore and Maxis and Astro inMalaysia. Mobilemode also has strong distribution relationships with eBay,Electronic Arts, Nokia and Discovery Networks, an affiliate of Liberty Media,Mobile Streams' strategic investor. Mobilemode's management team has worked in Asia for many years and will beinvaluable in supplementing Mobile Streams' existing business in the region. Thetwo founding members of Mobilemode, Jarno Salmivuori, CEO and Norma Salmivuori,Vice President Business Development, will assume management positions withinMobile Streams' Asia Pacific business unit. For the year to 31 March 2006, Mobilemode recorded turnover of €1.1m and profitbefore tax of approximately €48,000. Net assets acquired will be approximately€273,000. The transaction is expected to be earnings neutral in the year to 31December 2006 and earnings enhancing from the first full year followingcompletion. The consideration for the acquisition will be satisfied through the payment of€1m in cash and the issue of 1,537,736 ordinary shares in the Company. A furtherdeferred consideration may be payable in cash or shares (at the discretion ofMobile Streams) based on the achievement of 2007 profitability targets. Themaximum total consideration of the deal is €8m. The value of any shares issuedto satisfy any deferred consideration will be based on the average share priceof the Company over the 30 days prior to payment. Subject to the satisfaction ofconditions precedent, the transaction is expected to complete in August 2006. Commenting on today's announcement, Simon Buckingham, CEO of Mobile Streamssaid: "This acquisition represents a key milestone in the development of MobileStreams' global footprint. Mobilemode will provide us with an excellent steppingstone into the advanced markets of Australia, New Zealand, Hong Kong andSingapore whilst at the same time providing a platform for growth in theemerging markets of Taiwan, Indonesia and the Philippines." Jarno Salmivuori, CEO of Mobilemode said: "Mobilemode has established strongrelationships and operations in Asia which we look forward to developing andgrowing further through the combination with Mobile Streams." Enquiries Mobile StreamsSimon Buckingham, Chief Executive OfficerJitesh Sodha, Chief Financial Officer MobilemodeJarno Salmivuori, Chief Executive OfficerNorma Salmivuori, Vice President, Business Development +61 2 8257 3398 Brunswick GroupLaura Cummings/Dominic McMullan +44 207 404 5959 About Mobile Streams Mobile Streams is a leading provider of music, comedy, sport and entertainmentcontent on mobile devices, supplied to mobile phone networks globally includingVodafone and 3 in the UK, America Movil, Movistar & TIM in Latin America, Fido &Rogers in Canada and Dobson in the US. The Company creates, licenses and delivers quality content to Mobile NetworkOperators (MNOs) and consumers in the form of ringtones, graphics, video clipsand other products. It has developed relationships with both content owners andMNOs which enable it to act as an intermediary, providing an end-to-end serviceencompassing a broad range of elements from content licensing to contentproduction, account management and channel management. "Vuesia" is Mobile Streams' full service enterprise mobile media managementsolution. "Vuesia" facilitates content ingestion, management, delivery, billingand reporting. Mobile Streams has subsidiaries in the US, Argentina, Brazil, Mexico, Chile andColombia and has approximately 100 employees. For more information please go to www.mobilestreams.com About Mobilemode Mobilemode is a mobile entertainment and information content aggregator servingthe needs of mobile phone operators, portals and brands that need "mobilisation"services in the Asia Pacific region. Mobilemode distributes the latest mobile entertainment, lifestyle and sportcontent and applications from the most advanced mobile markets around the world. Currently Mobilemode has offices in Sydney (HQ), Hong Kong and Singapore. This information is provided by RNS The company news service from the London Stock Exchange