MedicVision (ASX:MVH), soon to be renamed Media3Corp, has arranged to purchase mobile marketing and content distribution company MConnect for $8 million in cash and stock.
MConnect offers a range of mobile messaging solutions, including a fully managed or self-service mobile marketing platform.
It earned around $1.8 million in ebitda in FY10, and expects to earn $2-3 million in the current financial year.
The acquisition will be funded through $3 million in cash, and 100 million shares at an issue price of $0.05 per share.
The exact terms of the acquisition will remain confidential until after due diligence is complete in around four weeks.
MVH shares are today trading 18% lower at $0.041, but are still substantially higher than the closing price of $0.16 from July 29.