The transaction is valued at a maximum enterprise value of $41 million.
Provider of mobile payment and mobile identity solutions Boku Inc (LON:BOKU) today announces the completion of its acquisition of the entire issued and to be issued share capital of Fortumo Holdings, Inc.
The deal, which was initially announced on June 17, 2020, has a maximum enterprise value of $41 million.
The acquisition is seen as a step in Boku’s global Direct Carrier Billing ( DCB) growth strategy, bringing together two major platforms in the DCB market with complementary capabilities and customer bases. 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.
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.
For the financial year ended 31 December 2019, restated to Boku’s accounting treatment, Fortumo generated audited revenues of $7.2 million, Adjusted EBITDA of $2.3 million and an operating profit of $2.1 million. As at 31 December 2019, Fortumo had net assets of $8.7 million.