Mobile payments provider Boku to buy Fortumo
Boku has conditionally agreed to acquire the entire issued and to be issued share capital of Fortumo Holdings, Inc. and its subsidiaries in a transaction valued at a maximum enterprise value of $41 million.
The Acquisition is a significant step in Boku’s global Direct Carrier Billing growth strategy, bringing together the two most profitable platforms in the DCB market with complementary capabilities and customer bases.
he Acquisition will cement the Group’s positioning as a leading mobile payment and mobile identity solutions company. Fortumo primarily focuses on providing mobile payment solutions to over 400 small-to-medium sized enterprises, but also services larger merchants including Google, Amazon and Tencent.
Fortumo is being acquired for a maximum consideration of $45 million which includes Boku acquiring $4 million of net working capital. The Total Maximum Consideration comprises $37.6 million in cash along with approximately $2 million in Restricted Stock Units payable to the selling equity holders of Fortumo plus further consideration of up to approximately $5.4 million in cash, representing 12% of the Total Maximum Consideration, which is to be held in escrow subject to certain EBITDA earn-out, working capital and indemnity conditions being satisfied.
Jon Prideaux, Boku’s CEO, commented, “Boku has always grown by a mixture of organic growth and selective acquisition. This deal, which will be our sixth, cements our position as the scale player in Direct Carrier Billing. It brings together the two most profitable players in the industry, with compatible technology, complementary customers and with a great cultural fit.”
Martin Koppell, Fortumo’s CEO, commented,”Joining the Boku group of companies is a great next step for the Fortumo team, which has built up a world-class, business critical technology platform used by some of the world’s leading digital merchants. With a joint strategy, we will be able to better help merchants grow their presence across the world. This also represents a fundamental shift in the Direct Carrier Billing market as the reach, complexity, quality and time-to-market for the solutions we build together will be unmatched.”