Velti, a publicly-traded mobile advertising company, agreed to buy Air2Web for $19 million in cash. It’s also adding to its equity stake in Chinese mobile ad exchange CASEE, which it acquired a partial stake in during 2008.
Air2Web is a mobile customer-relationship management company that Velti says has ties to financial industry clients like American Express, HSBC, Barclays Bank and Citigroup. Velti also said the company has relationships with carriers like AT&T and Comcast in the U.S. and India.
Velti says as part of the $19 million it’s paying for Air2Web, it gets to keep $12 million in annual revenue the company generated. (So we’re looking at $7 million for equity in the company beyond the cash it has in the balance sheet.)
It expects that the company will make $3 million in revenue and $1 million in earnings before interest, taxes, depreciation and amortization in the fourth quarter of this year.
For CASEE, Velti will pay $8.4 million for the remaining equity stake in the company with $3.9 million in cash and then $4.5 million in cash or common shares. If the company meets its earn out targets, then Velti might pay as much as $20.7 million. Velti expects that CASEE will bring in about $1.5 million in revenue and $0.5 million in earnings before interest, taxes, depreciation and amortization in the fourth quarter.