Velti, a publicly-traded mobile advertising company, agreed to buy the U.K.’s Mobile Interactive Group or MIG in a deal worth up to $59 million in cash and earnouts.
Velti will pay $25 million (of which $20 million is cash) at the deal’s closing. Then it may pay up to $34 million through 2013 based on MIG’s performance. The deal is based on a multiple of 7.5 on MIG’s earnings before interest, taxes, depreciation and amortization.
MIG, which has 160 employees, saw more than $100 million in gross billings and more than $20 million in net revenues last year. The company caters to clients like Skype, Vodafone, O2, Pepsi, BBC and Sony. MIG has a technology platform that lets brands host mobile commerce transactions and manage their websites and apps. It also lets them manage messaging to customers.
As for Velti, they swung to a profit this quarter, earning $623,000 of net income on $38.2 million in revenue in the quarter ending in September. Revenue is up 85 percent from the same quarter a year ago and Velti has a market capitalization of $538.6 million.
Velti has made several acquisitions this year including Mobclix, a Palo Alto-based company that helps developers mediate between different ad networks and offers a real-time bidding platform for advertisers. It also bought CASEE to tap into China’s growing mobile advertising market and Air2Web.