Motopia mulls claim for underperforming M&A

Motopia mulls claim for underperforming M&A

Mobile content and marketing company Motopia (ASX:MOT) may make a warranty claim on its mConnect acquisition, after the deal failed to pay off as expected.

The company, which acquired mConnect in March as it changed focus from healthcare to mobile content, said the financial performance from the acquisition had not met forecasts provided by the vendors.

A successful warranty claim would offset the price of the $8 million acquisition.

Reflecting the underperformance, Motopia maintained its guidance of an expected ebitda loss of nearly $1.1 million in calendar 2011.

But the company, which reported a net loss of $4 million for the December half last year, expects a change of fortunes in 2012.

The company is forecasting a positive ebitda of $5.3 million for the year. Revenue is likewise projected to grow to $13.2 million in 2012, from $5.6 million this calendar year.

Last month, Motopia revealed it expects to revenue of $3 million next year from its new mobile marketing platform alone.

MOT shares stayed flat on Monday at $0.051.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsMotopiamConnectGuidanceASX:MOT

Show Comments