Mobile phone group Getmobile has agreed to buy German rival KK Media for about €2.5 million in a bid to boost its online presence in its home market.

Dublin and London-listed Getmobile, which was formed through a reverse takeover of the German group of the same name in 2005, will use existing resources to pay an initial sum of €2 million, followed by additional payments depending on the value of the group's net assets and the achievement of certain profit targets.

Getmobile sells mobile phone contracts in Germany on behalf of operators through home shopping, mail order and the internet. Privately-held KK Media does the same thing but solely via the internet and would be considered a leader in this area.

KK Media had sales of €9.9 million last year and recorded profit after tax of about €500,000.

An additional income source and increased exposure will be welcome for Getmobile, which has struggled in recent times as increased competition has made it difficult for the company to win new business.

In June the company issued its second profit warning in less than a year.