MobiVentures Has Entered Into an Agreement to Acquire Purepromoter Limited
08 April 2008 - 10:49PM
PR Newswire (US)
Arranges Financing of $2 Million to Fund Acquisition LONDON and NEW
YORK, April 8, 2008 /PRNewswire-FirstCall/ -- MobiVentures Inc.
(OTC:MBLV) (BULLETIN BOARD: MBLV) , an international provider of
high quality mobile applications, content and services today
announced that it has entered into a definitive agreement to
acquire Purepromoter Limited ("Pure"), a U.K.-based global provider
of e-mail and SMS marketing solutions in 40 countries, for $7.8
million. The acquisition is expected to close by the end of April.
Pure, founded in 2002, provides powerful, low cost e-mail,
multimedia messaging (MMS) and text messaging (SMS) marketing
campaigns to businesses and agencies, including clients such as
Emap, The FT, Economist Conferences, Littlewoods, ultimatepoker.com
and innocent drinks. Through its agency channel, Pure works with
companies including Halifax, Barclaycard, Levis Europe, Pepsi, O2,
Red Bull and Starbucks. The company had revenues of $2.8 million
for the fiscal year ended March 31, 2007, which is expected to
exceed $4.1 million for the year ended March 31, 2008, a
year-over-year increase of approximately 50%. These revenues are up
from $1.1 million in fiscal 2006 and $430,000 in fiscal 2005. The
operating income at fiscal year-end 2007 was $670,000 and is
expected to exceed $1.1 million for the year ended March 31, 2008.
In connection with the acquisition of Pure, MobiVentures has
arranged $2 million in financing from Trafalgar Capital Specialized
Investment Fund in the form of convertible debentures to fund the
acquisition. Nigel Nicholas, chief executive officer of
MobiVentures, commented, "Pure has done a great job of penetrating
the global market with a variety of electronic marketing solutions,
and its growing customer base, which now totals approximately 700
businesses of all sizes, is evidence of the quality service it
provides. The number of mobile subscribers is growing significantly
around the world through innovation in the creation and delivery of
content on mobile devices. Pure takes the process one step further
in email messaging by measuring results, an extremely valuable
program component for clients who need to assess the effectiveness
of dollars spent on their marketing campaigns." Mr. Nicholas
continued, "The acquisition of Pure has a number of important
advantages, including its recurring revenue stream, augmentation of
our distribution capabilities, a talented and experienced staff and
significant cross-selling opportunities of turnkey marketing
solutions. MobiVentures plans to leverage Pure's customer base to
sell and market our mobile applications, while Pure will benefit by
offering its existing and new customers a broader suite of services
available through our earlier acquisition of Move2Mobile. Our goal
is to accelerate our profitability through our expanded
distribution, product and service offerings. We expect the combined
companies to continue to generate positive cash flow by achieving
strong operating leverage in the combined businesses." Stuart
Hobbs, Managing Director for Pure, stated, "MobiVentures has been
very successful in creating industry leading mobile marketing
applications and multi-media content as well as establishing
relationships with over 150 worldwide distributors. A large portion
of our current sales are derived from email messaging campaigns,
providing us an ideal customer base to leverage MobiVentures'
expansive suite of mobile marketing applications. Although mobile
marketing campaigns are still in the early growth phase, the
leaders of tomorrow will be those that recognize this opportunity
and capitalize on it. By combining forces with MobiVentures, and
gaining access to their expansive distribution channels,
MobiVentures is very well positioned to become one of those pioneer
companies." Mr. Nicholas concluded, "We had previously announced
the signing of a definitive agreement to acquire Move2Mobile, the
UK's foremost wireless business incubator and accelerator, and we
are pleased to report that we have completed the transaction. Our
goal now is to rapidly and seamlessly complete the integration of
Pure and benefit from the immediate synergies of our combined
companies. We look forward to aggressively pursuing similarly
accretive and complementary acquisitions over the next 12-18
months." Further terms of the Pure acquisition, additional
information regarding Move2Mobile and the terms of the debentures
are outlined in the Form 8-K filed on April 4, 2008. About
MobiVentures MobiVentures Inc. is an established provider of
leading edge multi-media mobile content and services, with clients
across the UK, Europe, Asia and North America. MobiVentures
acquires and consolidates growing companies that operate within the
mobile content and service industry. Through the combined scale and
resources, MobiVentures seeks to accelerate growth and time to
market for its portfolio companies and their respective products,
which stand to immediately benefit from the company's broad content
array, international distribution channels and strategic alliances.
About Purepromoter Limited Pure offers a complete and flexible
software solution to add power to email marketing and SMS
advertising: PureResponse. Pure helps its clients develop the most
effective way to display their email marketing message, and ensures
its clients get the highest send rates and lowest number of
opt-outs. Additional information about the company is available at:
http://www.pure360.com/. About Move2Mobile Move2Mobile is the UK's
foremost wireless business incubator and accelerator. Established
in mid-2002, Move2Mobile provides services to a range of businesses
from start-up entrepreneurs through to established companies
wishing to accelerate and grow their business. Move2Mobile's
primary focus is helping businesses by providing management,
financial, commercial and other support to selected start-up and
early stage ventures in wireless and mobile related industries.
Move2Mobile is well positioned to capitalise on its niche position
as UK's foremost accelerator for early stage wireless and mobile
related companies. Statements about MobiVentures' future
expectations and all other statements in this press release other
than historical facts are "forward- looking statements" within the
meaning of section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934, and as the term is defined
in the Private Litigation Reform Act of 1995. MobiVentures' actual
results could differ materially from expected results. MobiVentures
undertakes no obligation to update forward-looking statements to
reflect subsequently occurring events or circumstances. The
forecasted revenues and other financial information for Pure
Promoter for its fiscal year ended March 31, 2008 are projections
based on guidance provided by management of Pure Promoter. These
projections are forward looking statements that are subject to
contingencies associated with the business of Pure Promotor. There
is no assurance that these projections will be achieved.
Accordingly, investors should not place undue reliance on these
forward looking statements. DATASOURCE: MobiVentures Inc. CONTACT:
IR, David K. Waldman or Klea K. Theoharis, +1-212-671-1020, of
Crescendo Communications, LLC, for MobiVentures Inc. Web site:
http://www.mobiventures.com/ http://www.pure360.com/
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