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Mobile service provider iTouch has conditionally acquired 75 percent of an Australian telecommunications business, it was announced on Monday.
The initial purchase consideration of Telequity is for AUS2.6 million payable in cash and AUS1.8 million worth of iTouch shares to be at the average closing middle market price for an iTouch ordinary share over the last three months.
iTouch sees the acquisition as an opportunity to form "new strategic and contractual relationships with major media and network." The company also hopes that the relationship between itself and Telequity will enable the rollout of the iTouch range of mobile services through Telequity's customer base.
Telequity operates the largest bill pay system in Western Australia and has strong relationships with media and network clients.
Telequity provides interactive voice response (IVR) and short message services (SMS) to consumers and corporate customers. Services include SMS-based paging, IVR based credit card recharging for pre-paid mobile customers, mobile and IVR products, help desk and a call-centre. In the 11 months to 31 May 2001, Telequity had profits before tax of AUS198,000 and as at that date had net assets of AUS296,000.
iTouch provides mobile services to consumers and corporate customers. The Irish-run company has operations in Ireland, the UK, South Africa, New Zealand and Isreal. It packages and transmits news, sport, financial news and weather through SMS, PDA and WAP. Its media partners include Independent News Media, APN, Globes and MIH.
In the first quarter of 2001, iTouch recorded revenue of STG2.6 million, 36 percent up on the previous quarter.
In December 2000 it bought out the New Zealand mobile office applications developer, Holliday in a STG7.4 million deal. In March 2001 ElectricNews.Net reported on new mobile office software launched by iTouch, which would allow business people to control inventory and other office functions.
The products will be rolled out in the six countries in which iTouch has a presence including Ireland. The company is currently setting up sales teams for this.
iTouch currently employs 246 people.
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