Motricity Buys Adenyo for $100m

Motricity, a mobile data solutions provider focused exclusively on the mobile internet market, has signed an agreement to acquire Adenyo, a mobile marketing, advertising and analytics solutions provider with operations in the US, Canada and France, for an initial consideration of $100m (£62.8m), consisting of cash, and shares of Motricity’s common stock. A minimum of 50 per cent of the initial consideration will be cash; however, the cash component can be increased up to 100 per cent at Motricity’s election.

The agreement also contains an earn-out provision, pursuant to which Motricity would pay up to $50m, in cash, common stock, or a combination thereof, at Motricity’s election, based on Adenyo’s financial performance during the 12 month period following the closing of the transaction, which is expected to be completed by the end of Q1, 2011. Adenyo’s unaudited 2010 revenues are approximately $20m.

Adenyo’s clients include brands, media companies, ad agencies and mobile operators such as McDonald’s, Coca-Cola, Paramount Pictures, Omnicom Media Group and Bouygues Telecom. Motricity says the addition of Adenyo will significantly enhance its ability to deliver a full range of mobile data service solutions to its mobile operator and enterprise customers around the world, through its cloud-based managed service platform.

Motricity plans to integrate Adenyo’s mobile advertising and analytics capabilities into its mCore Platform. The firm says that this, combined with mCore’s existing content management and mobile commerce capabilities, will create a solution set that will deliver high value and highly relevant content, applications, goods, services and ad campaigns, all through one highly scalable, carrier-grade, managed service platform. These new capabilities, says Motricity, will enhance its ability to fully capitalize on the tremendous growth taking place in the global mobile data market, especially the smartphone segment.ABI Research forecasts an unprecedented opportunity for growth in the mobile marketing and advertising market, projecting global spend will reach $28.9bn by 2014.

“We are delighted to become part of the Motricity family,” says Adenyo chief executive and chairman, Tyler Nelson. “Motricity is a proven market leader in the mobile data services industry, and has reached the level of scale and global presence required to lead the next wave of mobile data services value creation. The ability to offer dynamic mobile advertising and mobile commerce through one integrated, managed service platform – informed by advanced analytical consumer insights – will usher in the next generation of high value, highly relevant mobile experiences.”