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Some big consolidation is afoot in mobile marketing and technology services with San Francisco-based Velti buying London’s UK market-leading Mobile Interactive Group (MIG) for up to $54 million.
The deal includes $20 million in cash immediately but the price includes a big earn-out of an additional possible $34 million by 2013. The price will be a minimum $25 million.
Velti is flush with cash. Despite having already been listed on London’s AIM, it floated on the Nasdaq this January to raise $150 million, though $39 million was used to pay back loans.
MIG allows Velti to grow in Europe, and the UK in particular, where MIG has become known for building products for clients in broadcasting, news media, telcos and ecommerce operators, including mobile and iPad apps for clients like News International, Sky, Vodafone (NYSE: VOD), Sony (NYSE: SNE), the BBC and Marks & Spencer.
Velti says 160-employee MIG had $20 million in revenue and $100 million billings in 2010.
MIG had been building itself up through its own acquisition spree, buying mobile response facilitator Piri, production house Golden Bytes, mobile payment outfit Zaypay and the digital marketer Digital Jigsaw.