OnMobile Global - Enters US... - ICICIdirect

OnMobile Global has announced the acquisition of Livewire Mobile, which is a US based company providing end-to-end managed mobile entertainment solutions for network operators and consumer device manufacturers. The resultant entity would be a wholly-owned subsidiary of OnMobile - OnMobile Live Inc. OnMobile would pay $17.8 million for the deal. The purchase will also include purchase of stock of Fonestarz Media Ltd, the managed services arm of Livewire in the UK.

Liverwire provides an integrated suite of solutions including full track music, ringback tones, ringtones and infotainment services. With this acquisition, OnMobile would get an entry into the US markets to strengthen its current presence in Latin America, Europe and Asia.

OnMobile had a net cash of Rs. 151.8 crore on its books at the end of FY13, which we believe would be used for funding this acquisition. We maintain BUY on OnMobile with a target price of Rs. 45.

Source : Equity Bulls

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