Bangalore: Mobile value-added services firm OnMobile Global Ltd has agreed to buy Boston-based mobile entertainment services firm Livewire Mobile Inc. for $17.8 million, as it looks to expand its presence in the mobile music and entertainment market in North America.
The Bangalore-based company, which was incubated at Infosys Ltd, said the acquisition would include the purchase of the stock of Fonestarz Media Ltd, the UK-based managed services arm of Livewire. The newly created entity will be called OnMobile Live Inc., OnMobile said.
“The acquisition of Livewire Mobile, with its reputation for providing cutting-edge music services, will help us consolidate our global leadership position in RBT (ringback tone) and music by firmly establishing our presence in North America for these services. This augments our strong market presence of mobile cloud services that we currently provide to major mobile operators in North America,” said Mouli Raman, chief executive and co-founder of OnMobile, in a statement.
Livewire Mobile currently provides ringback tone and mobile music services for US-based wireless service providers such as Sprint Nextel Corp., MetroPCS Communications, and Public Mobile.
Last year, Arvind Rao stepped down from his role as chief executive at OnMobile over “weaknesses in some processes” found after an internal review of its accounts by KPMG.
Several other top executives, including two chief financial officers, had also resigned prior to Rao’s departure in 2012.