Mobile VAS company OnMobile is acquiring Boston-based Livewire Mobile, an end to end provider of managed entertainment solutions for mobile operators and consumer device manufacturers. The Bangalore based company will pay $17.8 million to acquire Livewire Mobile, according to a BSE filing.
Livewire Mobile offers a suite of solutions such as full track music, ringback tones, ringtones and infotainment services. The firm currently powers ringback tone and mobile music solutions for Sprint, MetroPCS and Public Mobile, among others.
The acquisition of Livewire Mobile will help Onmobile to consolidate its presence in North America in ring back tone and music services. Launched in 2000, OnMobile is a VAS company for mobile, landlines and media service providers. The company caters to over 1 billion mobile users monthly across 59 countries.
The deal also includes purchase of stock of Fonestarz Media Ltd, the UK-based managed services arm of Livewire. After this acquisition, the new entity will be known as OnMobile Live Inc, and will be a 100 % subsidiary of OnMobile LLC.
Earlier in February this year, OnMobile exited from Ver Se – a mobile classifieds solutions firm it incubated. The company had sold its remaining 5% stake in Ver Se for Rs 5.5 crore.
For the first quarter of FY14, OnMobile posted Rs 185.2 cr in sales, up 36% year on year.