Mobile content and applications firm New Motion, based in Irvine, CA, is acquiring internet marketing firm Traffix, based in Pearl River, NY, in a stock swap valuing Traffix at $138.9 million. Both companies are public: Traffix is traded on Nasdaq, while New Motion (OTCBB: NWMO) is traded on OTC board. Traffix shareholders will receive .683 shares of New Motion for each share they own, resulting in their holding a 45 percent stake in the combined company. The companies predict combined 2008 revenue of between $145 million and $160 million.
The two sides see their businesses as complementary, with New Motion’s mobile content business benefiting from Traffix’ various services, such as online advertising, search engine optimization and affiliate marketing. Upon completion New Motion CEO Burton Katz will continue to serve as CEO, while Traffix CEO Andrew Stollman will stay on as a consultant. Release.
Comments have been disabled for this post