BangoPlc said May 9 that it acquired Danal Inc.'s U.S.-based carrierbilling services, BilltoMobile, for an initial consideration of $3.5 million.
The consideration comprises $3 million in cash, to be paidimmediately, and $500,000 in Bango shares at an issue price of 60 pence apiece.Deferred consideration, which is expected to be $35,000, may become payable incash in the first quarter of 2017, depending on the performance of one revenuestream. Bango will also pay certain fees linked to the acquisition which areexpected to amount to $215,000 and relate to the migration of services fromDanal.
BilltoMobile is the only operator service integrated intoall four major U.S. mobile network operators, Bango said. It processes carrierbilling payments for app stores and major merchants such as Google Play andMicrosoft.
The annual loss attributed by Danal to the assets beingacquired is about $850,000. The acquisition is expected to make a significantcontribution to Bango's performance in 2016 and beyond.
Application will be made for admission to trading of 586,095ordinary Bango shares of 20 pence each on the London Stock Exchange's AIM.Admission and the start of dealing of the shares are expected to take effectMay 13.