MedicVision signs papers for $8m mConnect buy

MedicVision signs papers for $8m mConnect buy

MedicVision (ASX:MVH) has finalised the terms of its $8 million takeover offer of mobile marketing company mConnect Group.

MedicVision - a former surgical technology company which is currently rebranding as digital media and marketing company Media3Corp - announced it had entered into a binding agreement with mConnect over the acquisition.

The total purchase price is $3 million in cash, as well as 100 million MVH shares at $0.05 per share and 10 million options exercisable at $0.20.

The mConnect Group is the developer of fully-managed or self service mobile marketing platform solutions to customers worldwide.

The group generated ebitda of around $1.8 million in FY10, and expects to earn between $2 million and $3 million ebitda in FY11.

MedicVision executive chairman Jitto Arulamapalam said the purchase would give his company access to the multi-billion dollar mobile marketing industry, and position it as an end-to-end mobile marketing provider with a global reach.

“The mConnect group is completely focused on global expansion in an ever growing mobile marketing medium,” he said.

“This important acquisition has put MVH in the heart of the dynamic global mobile marketing space.”

MedicVision announced the purchase in August, and completed due diligence on the deal last month.

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Tags Mergers and acquisitionsMedicVisionmConnectMedia3CorpASX:MVH

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