Australian mobile payments firm Crowd Mobile has agreed to acquire Dutch m-payments company Track Concepts for EUR22.4m.
The vendors have agreed to provide contracted management and consulting services until May 2016 and the Track employees will be incentivised to maximise the performance of the business under Crowd.
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In addition to the initial consideration, a capped earn-out consideration of up to EUR4.7m may become payable in cash based on Track generating EUR12m in EBITDA in CY15, Crowd Mobile said in a press statement.
Commenting on the deal, Crowd Mobile CEO Domenic Carosa said: "The Track Concepts acquisition extends the Company’s global m – payments network reaching over 160 mobile operators across 50 countries , allowing Crowd Mobile to accelerate its launch of existing products into new markets, and offers significant cross promotion opportunities and customer acquisition synergies.
"In addition, Track Concepts is a highly profitable and cash generating business and will provide Crowd Mobile with strong growth in revenue, earnings and free cash flow. We see a large number of synergies available to the combined group, which will help to position Crowd Mobile as a leading m – content & m – commerce organisation globally," Carosa added.
The deal is expected to be completed in October 2015.
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