Mobile social networking platform developer MOKO.mobi (ASX:MKB) has arranged to acquire a UK-based mobile content business for $2.7 million in cash and stock.
MOKO.mobi said the business, which it did not name, has annual revenue of around $14 million. It has operations in regions including Europe and South Africa.
The business is currently owned by a holding company, which is itself majority-owned by a US hedge fund.
As part of the proposed transaction, this hedge fund would become a substantial MOKO.mobi shareholder.
The UK is an important market for MOKO.mobi, with the company having deals to provide its platform in place with major mobile operators Orange UK (which is now a brand of joint venture Everything Everywhere), Telefonica's O2 and Virgin Media UK.
MOKO.mobi in March also announced the acquisition of UK-based mobile video community site EyeVibe.
CEO Ian Rodwell said the acquisitions will in tandem allow the company to “establish a European hub for MOKO's operations, and enable us to further expand on our product portfolio and carrier relationships.”
MKB shares have been trading at $0.066 since late last month.