Israeli digital performance marketing developer XLMedia plc (AIM: XLM) has acquired fellow Israeli company ClicksMob Inc., a mobile performance marketing platform.
XLMedia, through its mobile marketing subsidiary Dau-Up, has signed a definitive agreement to acquire all business and assets of ClicksMob for $5.1 million in cash. The acquisition is expected to be completed during the first quarter of 2017 and is expected to be earnings accretive in the current financial year. ClicksMob generated unaudited revenue of $16.3 million and profit before tax (excluding share based payments) of $0.3 million for year ended 31 December 2016.
ClicksMob delivers performance-based user acquisition to leading apps across a number of verticals, including gaming, e-commerce, travel, entertainment and finance. The addition of ClicksMob will provide the Group with significant presence in Asia, with over 30% of ClicksMob 2016 revenues generated from the region.
By leveraging the Group’s existing expertise within games and social marketing, the combination between Dau-Up and ClicksMob will enable XLMedia to deliver services to a wider range of customers in different verticals and geographies, whilst maximizing benefits of scale.
As part of the transaction Dau-Up will acquire ClicksMob’s proprietary technologies such as audience matching, engine optimization and fraud fighting tools which will be integrated with Dau-Up’s own technology.
XLMedia CEO Ory Weihs said, “We are excited to announce the acquisition of ClicksMob, which combined with our own mobile marketing capabilities provides a significant future growth engine for the Group across key verticals. This acquisition represents an excellent opportunity for XLMedia to further extend our reach in Asia in addition to strengthening our presence in North America. As mobile marketing becomes a driving force in the online marketing world, we see this as a strategic acquisition to further strengthen our offering in this important vertical.”
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2017
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