23 March 2007
FOR IMMEDIATE RELEASE Friday, 23 March 2007
VELTI ACQUIRES BULGARIA's LEADING MOBILE SERVICES PROVIDER
LONDON - Velti plc ('Velti' or 'the company'), a leading provider of software
platforms, applications and services for advertising agencies and mobile
operators, has agreed to acquire a 100% interest in M-Telecom OOD ('M-Telecom')
for a total consideration of between €1.01 million and €2.56 million depending
on M-Telecom achieving certain profitability targets for 2007 and 2008. The
total consideration will be calculated at a multiple of 4.5 times EBITDA. The
initial consideration of €0.48 million will be satisfied in cash on completion
and the remaining payment will be made in cash or Velti ordinary shares (at the
company's discretion) by 30 May 2009.
M-Telecom is the leading independent mobile value added services provider in
Bulgaria with an estimated market share of approximately 40%. Its product
offering includes mobile marketing and content services. M-Telecom's largest
customer is M-Tel, Bulgaria's leading mobile network operator. The acquisition
of M-Telecom complements Velti's existing relationship with COSMOTE which owns
Globul, Bulgaria's second largest mobile network operator. M-Tel and Globul
account for approximately 90% of the Bulgarian mobile market.
For the year ended 31 December 2005, the latest published statutory accounts,
M-Telecom generated revenues of approximately €580,000 and EBITDA of
approximately €100,000. For the year ended 31 December 2006, management accounts
show that M-Telecom generated revenues of approximately €770,000. The company
expects that M-Telecom will make a positive contribution to earnings per share
for 2007 and 2008 on a fully diluted basis.
The acquisition of M-Telecom establishes Velti's leadership position in the
Bulgarian mobile value added services and mobile marketing market, providing
Velti with the opportunity to generate additional revenue by selling its mobile
platforms to Bulgarian mobile network operators and advertising agencies. The
top management of M-Telecom, including Mr Stoytcho Vlaykov (Managing Director),
a former Mobile executive for Yahoo, will remain with the company for a minimum
of two years.
Stoytcho Vlaykov, Managing Director of M-Telecom, commented: 'I am very excited
that M-Telecom is joining forces with Velti, and we look forward to jointly
serving mobile customers and operators in Bulgaria, providing premium mobile
services and content.'
Alexandros Moukas, Chief Executive of Velti, commented: 'This is a focused
acquisition for Velti establishing us in Bulgaria in line with our stated
strategy. M-Telecom is the leading Mobile Value-Added Services provider in
Bulgaria with a respected management team and will enable us to grow rapidly and
profitably in that market.'
Simon Bloomfield or Andy Harris
Velti is a leading platforms and service provider that enables mobile marketing,
content and value added services. Velti works with mobile operators, advertising
agencies and media to deliver value added services.
Founded in 2000, Velti has offices in London, New York, Boston and Athens and is
already serving more than 100 corporate customers in 9 countries including
Vodafone, Orange, COSMOTE, TIM, Q-Telecom, OTE, Turkcell, Verizon / Maxpreps and
Argos among others. Velti is a publicly traded company listed on the London
Stock Exchange (AIM) with strong growth in revenue and profits and currently
employs more than 180 people, including more than 110 technology staff.
This information is provided by RNS
The company news service from the London Stock Exchange