BackIMImobile acquires TextLocal for about Rs127 crore
The initial consideration for the deal is worth 10 million cash and 1 million by way of IMI shares with a deferred consideration of up to 2.15 million
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Mumbai: IMImobile Plc, a mobile software and services company founded by Vishwanath Alluri, said on Tuesday that it has acquired UK-based mobile messaging company TextLocal Ltd in a transaction worth about Rs127 crore in stock and cash.
The initial consideration for the deal is worth £10 million cash and £1 million by way of IMI shares with a deferred consideration of up to £2.15 million, bringing the total deal value at £13.15 million or Rs127 crore, the company said in a statement.
Listed on London stock exchange’s sub-market AIM (Alternative Investment Market), IMImobile has a development centre in Hyderabad, and more than 650 employees worldwide.
IMImobile reported revenue of £43.4 million for the year ended 31 March, and net profit of £3.9 million for the same period. The acquisition is expected to enhance IMImobile’s earnings from the second half of the year ending 31 March.
“The acquisition will allow us to target the small and medium-sized business segment that we don’t currently serve and expand our cloud-based mobile messaging offering," said Jay Patel, chief executive of IMImobile in a statement. He added that his company hopes to integrate TextLocal into the group over the next six months.
Alastair Shortland, chief executive and founder of TextLocal, said in a statement that his company “will continue with the development of innovative features".
TextLocal provides mobile messaging solutions to businesses. It reported revenue and profit after tax of £7 million and £1 million, respectively, for the year ended 30 November, 2013.
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