InternetQ plc(LSE-AIM: INTQ) the leading global mobile marketing, digital entertainment and advertising technology company, today announces that it has reached an agreement to acquire Interacel Holdings LLC, one of Latin America’s fastest growing mobile service providers.
Interacel is active in some of the world’s fastest growing mobile markets and has direct connectivity agreements with mobile network operators in 11 countries across the Americas. Interacel also holds strategic partnerships with national media companies, including the Albavisión network, the owners of multiple television and radio stations across Latin America.
For the year ended 31 December 2012, Interacel generated revenues of USD$5.18 million (€3.83 million). Interacel is profitable and debt free. The acquisition of Interacel is expected to be earnings enhancing in the current financial year.
The significant opportunity for mobile commerce in Latin America is underpinned by Interacel’s existing geographic footprint, which includes Argentina, Bolivia, Chile, Ecuador, Paraguay, Peru, Costa Rica, Dominican Republic, Guatemala, Honduras and Nicaragua.
This acquisition will accelerate InternetQ’s growth across Latin America, providing an established platform from which to upsell the Company’s mobile marketing, Akazoo music streaming and Minimob smart advertising services directly to mobile network operators and media brands.
Strategic Rationale:
The acquisition of Interacel is in line with InternetQ’s stated strategy of broadening its geographical reach whilst further developing its service offering. The key benefits of the transaction are as follows:
- Immediate “plug-and-play” access to a significant number of high growth Latin American markets;
- Ability to leverage “untapped” capacity of existing direct connectivity agreements with Mobile Network Operators (“MNOs”) in 11 countries, in markets which are effectively closed to new entrants;
- Immediate capability to deploy and widely promote existing products and services and more significantly cross sell assets across a wider market footprint;
- Significant opportunity to take advantage of the imminent transformation to a smartphone culture via the Minimob smart advertising platform; and
- Utilise the strength of the management team and ongoing media relationships to effectively exploit the vast regional potential arising from the dramatic adoption of the mobile internet.
Panagiotis Dimitropoulos, Chief Executive Officer commented:
“We are delighted to announce the acquisition ofInteracel,which acceleratesour ability to deploy InternetQ’s services across Latin America, one of the world’s most significant mobile markets. Following on from our previous acquisitions in Southeast Asia and Central Europe, we will focus on combining InternetQ’s mobile marketing expertise with Interacel’sexisting network, which will create exciting new business and service growth opportunities.
This transaction enables us to create an immediate platform to provide MobiDialog, Akazoo and Minimob services across an additional 11 countries.”