Velti Plc (VELT: Quote,VEL.L) Wednesday said it has entered into a definitive agreement to acquire Air2Web, a provider of mobile customer relationship management solutions in the United States and India for many of the world's largest and most trusted consumer brands. In addition, Velti signed a definitive agreement to consummate the acquisition of the remaining interest in CASEE.
Air2Web's technology and data reach are very complementary to Velti's mGage platform. This transaction deepens Velti's U.S. footprint and provides it improved access to carriers and verticals such as the financial services industry. Velti will pay a consideration of around $19.0 million in cash for Air2Web and expects to keep in excess of $12.0 million of annualized revenue from the acquisition, the majority of which is derived from recurring platform licensing, usage and performance fees.
Velti would acquire the remaining equity ownership interest of CASEE, which in 2008, Velti acquired 33 percent of CASEE. Ye will continue to lead Velti's efforts in China through CASEE. Velti will pay up front consideration of approximately $8.4 million for the remaining interest in CASEE, such consideration to be comprised of around $3.9 million in cash and, at Velti's discretion at close, $4.5 million in cash or common shares of Velti plc.
Both transactions are expected to close in the fourth quarter.
by RTT Staff Writer
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