Transaction to drive immediate and long-term growth potential
SITO Mobile, Ltd. (OTCQB: SITO), a leading mobile engagement platform provider, announced today that it has acquired the mobile advertising business from Hipcricket Inc. The seller will receive 6,205,602 shares of SITO Mobile common stock valued at $2.4 million and $1.3 million in cash for a total purchase price of $3.7 million.
The purchase enables SITO to tap new revenue streams for its mobile advertising business through Hipcricket’s existing customer relationships with both advertisers and brands. The acquisition will also immediately expand and enhance SITO Mobile’s product offerings using proven technology from Hipcricket’s adServe platform through which Hipcricket generated nearly $30 million in revenue over the past 30 months.
“This transaction marks the successful culmination of a process we began over a year ago,” said SITO Mobile CEO Jerry Hug. “It now provides us with our most coveted asset within Hipcricket, and represents a major growth catalyst for SITO Mobile in many ways. First, we add a great team of experienced mobile advertising professionals that will enable a smooth transition and continued growth within the mobile advertising industry. Second, due to Hipcricket’s expansive network, we are stepping into many great new relationships with marquee advertising clients. Additionally, we now have the ability to integrate the best features of Hipcricket’s technology, one that will help us continue to improve and enhance the breadth and performance of SITO Mobile’s proprietary Location Based advertising platform. Lastly, we believe that the balance sheet improvements made this fiscal year, including this transaction, have advanced the Company toward executing on the plan to list our shares on a national exchange.”
About SITO Mobile Ltd.
SITO Mobile Ltd., (OTCBB: SITO) formerly Single Touch Systems, Inc. is a mobile engagement platform serving businesses, advertisers and brands for the purpose of building brand awareness, loyalty and sales. Through its patented technologies and an easy-to-use platform, the Company provides solutions that combine location-based advertising, SMS capabilities, and voice, to allow brands to communicate seamlessly across all mobile devices in key locations. In July 2014, SITO Mobile acquired DoubleVision Networks, a privately held mobile audience buying and targeting platform. Post the DoubleVision integration, SITO Mobile will now leverage real-time bidding algorithms that dynamically assess the open mobile advertising inventory for its “Followme” product, to deliver a superior ROI for its clients. SITO Mobile has built a strong IP portfolio around reservation-based and ad-supported streaming of digital media. The Company became cash flow positive in the first quarter of FY 2014. SITO Mobile has a new CEO, new lead Director, and a new culture. The Company recently secured $10 million in senior secured debt and $1 million in equity investment for general working capital purposes. In January, SITO Mobile entered into an asset purchase agreement with Hipcricket, Inc., a leader in mobile engagement and analytics, for $4.5 million in cash, to acquire its assets. Hipcricket holds 21 technology patents and reported revenues of $26.7 million for the fiscal year ended February 28, 2014.
SITO Mobile provides a mobile engagement platform that enables brands to increase awareness, loyalty and ultimately sales. For more information visit www.sitomobile.com.
