Route Mobile Limited completes acquisition

Route Mobile Limited had entered into a Business Transfer Agreement ('BTA') on June 15, 2020 with TeleDNA Communications Private Limited ('TONA'), Bengaluru, India for acquisition of primarily intellectual property ('software') and its associated identified customer contracts ('business'), on a slump sale basis. The Company has subsequently signed an amendment agreement to the BTA on October 1, 2020 and has completed the acquisition.

The target entity predominantly operates in telecom middleware and has developed telecom solutions including SMSC, MMSC, WAP (Wireless Application Protocol) Gateway, USSD (Unstructured Supplementary Service Data), LBA (Location Based Application), CBC (Cell Broadcast Centre), and Alert SMSC, and has a number of telecom operators as clients. This strategic acquisition will enable Route Mobile Limited and 365squared Ltd (Step-down the wholly owned subsidiary of the Company) to offer a deeper and comprehensive portfolio of products to the telecom operators, thereby fortifying Route Mobile's relationship with MNOs (Mobile Network Operators).

Route Mobile has acquired TDNA's contracts with customers in the Telecom industry (Telecom Network Operators) and also acquired the intellectual property (software) required to render the solutions and services under these contracts. The acquired contracts are with customers in India and other parts of the world.

Shares of Route Mobile Limited. was last trading in BSE at Rs. 783.80 as compared to the previous close of Rs. 806.80. The total number of shares traded during the day was 254910 and the deliverable quantity was 59620 shares.

The stock hit an intraday high of Rs. 832 and intraday low of Rs. 757.70.

Source : Equity Bulls

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