ITouch, the mobile phone services provider 50 per cent owned by Independent News & Media, has acquired British distributor m4 for €2.4 million.
An additional €14 million will be due should the company meet set performance targets within two years. The initial consideration is made up of €1.9 million cash and €500,000 in iTouch shares. Further payments are to be split between cash and shares.
The takeover offered unprecedented access to key high street markets in Britain, Mr Wayne Pitout, iTouch chief executive officer, said.
Shrugging off a mixed third quarter in which iTouch posted a 25 per cent increase in revenue to €20 million but a €1.7 million loss before deductions, Mr Pitout said the purchase had given the company first-mover advantage in the burgeoning specialist retail sector.
"As the mobile service market matures, so retail will become an important route to market for mobile value-added services."
The acquisition is expected to make a minor contribution before deductions to iTouch trading profit in 2002.
ITouch debuted on the London Stock Exchange two years ago and has operations in the Republic, Britain, South Africa, Australia and New Zealand.
It has also struck a revenue sharing and licensing agreement with MIH in Indonesia and Thailand.
The company recorded a 139 per cent increase in turnover to €37.5 million in the nine months to September 30th. Its operating cash outflow for quarter three was €2.2 million.
Established in 2001, m4 posted an €800,000 profit in the 12 months to last March.
The firm pioneered the mobile "content in a box" concept and provided electronic top-up facilities to the Tesco grocery chain. It had a potential reach of 30,000 retail outlets, iTouch said.
