Buongiorno S.p.A., a leading multinational operating in the digital entertainment market, has signed a definitive agreement to acquire 100% of the share capital of iTouch Ventures.
Founded in 1995 in South Africa, iTouch is now a market leader in the distribution of mobile entertainment products and services. The company has offices in 13 countries and distributes its content in 23 countries, having access to over 500 million mobile users through a flexible multichannel strategy.
Buongiorno is regarded as the market leader in Europe and the United States and has recently opened operations in emerging markets such as Latin America, Middle East and Africa. Buongiorno operates through two business lines: value-added services for wireless; and wired consumer services distributed through the brand BLINKO.
The value of the transaction is Euro 141 million. Buongiorno will pay Euro 129 million to iTouch shareholders and will absorb the current Euro 12 million of net debt of iTouch. The consideration will be satisfied partly in cash and partly in new Buongiorno shares to be issued to iTouch shareholders in exchange for iTouch shares in line with Italian bourse requirements.
The mobile VAS (value added service) market continues to offer major opportunities for development and requires increasing size and global scale.
We are excited to jointly address the market with Buongiorno. The joint entity will be the pre-eminent player in the sector globally, leading the way in the 3G revolution which is reshaping the traditional mobile content and services sector, comments Wayne Pitout, chief executive officer and co-founder of iTouch.
The combined company is expected to benefit from fixed cost synergies and scale, achieving tangible margin improvements and a reduction in business risk due to a balanced multichannel approach and improved geographic reach.
The deal is subject to certain conditions including Buongiorno shareholder approval.