2waytraffic to Acquire Mobile Solutions Provider, Emexus

2waytraffic, an interactive TV content developer that was formed in 2004 by three former Endemol executives and which recently floated on London's AIM, says that it is acquiring mobile solutions provider, Emexus, for an initial consideration of €8 million in cash and shares, and a deferred consideration of up to €3 million. According to the company, the acquisition, which is still subject to shareholder approval, will provide it with "a strong technology platform, enhanced mobile content applications, and a number of additional highly skilled, internationally experienced employees." Emexus, which has around 100 clients and operates in 18 countries, provides a technology platform for content aggregation and service and applications delivery in the fields of mobile marketing, mobile entertainment and mobile Internet. It is headquartered in The Netherlands, and has offices in New York City, Kuala Lumpur and Kiev. Last year, it generated unaudited net revenues of €2.7 million and net profits of €0.7 million; at the end of the year, its assets totaled €4.1 million. 2waytraffic says that the acquisition will be earnings-enhancing during the first full year after it takes place.

According to 2waytraffic, the acquisition of Emexus, which already supplies it with mobile services, reflects its strategy of "playing an active role in the consolidation of the interactive content value chain by extending its mobile offering vertically to ensure that the Group is well placed to exploit the interactive content opportunities that the next generation of mobile technology will provide." It says that Emexus' technical expertise and marketing and distribution platform will complement its own mobile content and entertainment services, and that the two companies also have complementary geographical footprints. "Emexus is highly complementary to our own business and will add a wealth of international expertise, experience and market knowledge in the mobile content space, as well as extending our international distribution network," 2waytraffic CEO, Kees Abrahams, said in a prepared statement. "2waytraffic specializes in providing high-quality interactive content. The Emexus team are experts in the enabling technology that not only delivers the mobile content but also enhances it by providing the interactivity that our subscribers want. The combination of content and technology will allow us to reach a worldwide mass audience in the rapidly developing mobile market."

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