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Affle India Ltd's step down subsidiary to acquire business assets of Discover Tech Limited

Posted On : 2021-01-26 17:45:53( TIMEZONE : IST )

Affle India Ltd's step down subsidiary to acquire business assets of Discover Tech Limited

Affle (India) Limited through its wholly-owned step down subsidiary Affle MEA FZ-LLC ("AMEA") (subsidiary of Affle International Pte. Ltd.) has entered into a definitive Business Transfer Agreement to acquire the Business Assets of Discover Tech Limited (registered in Israel). As part of the deal, Business Assets including the technology platform, brand name, intellectual property rights, business relationships and technical information of Discover Tech Limited will be acquired by AMEA ("Business Transfer").

This Investment is strategic for Affle's consumer platform business. It is an Out of Box Experience (OOBE) technology platform offering a major consumer touchpoint in the mobile device lifecycle for Dynamic app discovery and recommendation at initial boot or reset of the device during its lifetime through its platform integrations with Original Equipment Manufacturers (OEMs) and Mobile Network Operators (MNOs).

It fortifies Affle's vernacular on-device consumer experiences and strengthens the ecosystem connect with advertisers, OEMs and MNOs across India, global emerging markets in general and Africa in particular.

The fixed Consideration for Business Transfer is USD 1.15 million and maximum Success Fee (Incremental contingent consideration) is USD 3.37 million to be paid over a period of maximum 4 years.

Affle International Pte. Ltd. (AINT), a wholly-owned Singapore subsidiary of the Company has entered into a definitive Share Purchase Agreement to sell its minority investment of 8.0% in OSLabs Pte. Ltd., Singapore (Indus OS) to its Promoter Group Company Affle Global Pte. Ltd. (AGPL Singapore) for a consideration of USD 2.86 million in cash. AINT has also secured an option to purchase the minority investment back from AGPL Singapore at a premium of 5% after 1 year or 10% after 2 years subject to any approvals that may be required.

Shares of Affle India Ltd was last trading in BSE at Rs. 3745.95 as compared to the previous close of Rs. 3778.05. The total number of shares traded during the day was 9,146 and the deliverable quantity was 5,381.

The stock hit an intraday high of Rs. 3825 and intraday low of Rs. 3685.

Source : Equity Bulls