Shares of Affle (India) on Monday surged 9% following news of acquisition of mobile advertising tech firm – Mediasmart Mobile S.L.
At 1125 am, the stock was up 6.4% at ₹1,909.85 on the BSE, while the benchmark index Sensex was up nearly 1.5% at 38,855.22 points.
A total of euro 5.12 million (about ₹40.91 crore), including contingent consideration, will be paid for acquisition of 100% stake and economic rights of employees of Mediasmart, subject to certain performance conditions over a four-year period and to certain closing adjustments.
The total consideration also includes payments to employees (other than economic rights of employees) amounting up to euro 0.62 million ( ₹4.95 crore), to be paid over a period of four years.
In a filing to the BSE, after market hours on Friday, the company said its whole-owned Singapore subsidiary, Affle International, has entered three definitive share purchase agreements to acquire Mediasmart Mobile S.L, while step-down subsidiary Affle MEA FZ-LLC has entered into an assets purchase agreement to acquire all tech IP assets of the mobile advertising tech firm.
The agreements envisage acquisition of net assets of Mediasmart as on 1 January, 2020.
As per the deal, 94.78% shares will be transferred on or before 31 March, 2020 and the balance on or before 31 March, 2021.
“We are excited to announce our 1st acquisition in Europe and welcome the Mediasmart team onboard at Affle. Mediasmart has the perfect team, culture and tech platform for Affle to build greater strategic presence in Europe, US & Latin America,” said Anuj Khanna Sohum, chairman, managing director, and chief executive at Affle.
“Their proximity marketing programmatic platform strengthens our omni-channel platform to enable marketers to drive incremental online and offline conversions in both developed and emerging markets.”
For the December quarter, Affle (India) reported a 31% year-on-year increase in consolidated net profit to ₹21.4 crore. Revenue rose 27.4% to ₹94.5 crore from ₹74.1 crore in the corresponding quarter of 2018-19.
Read the similar article on Business Standards India