Mobile technology company Zamano has acquired Eirborne Text Promotions, a provider of mobile entertainment services, for an initial consideration of €1.7 million.
The initial payment includes €1.2 million in cash and 1,136,364 shares in Zamano, issued at 44 cent per share. An additional payment will be made which will be a maximum of five times Eirborne's pre-tax earnings in the year to May 31st, 2008, less the initial payment. The total consideration has been capped at €8.5 million.
Eirborne had earnings before interest, depreciation, taxes and amortisation of €500,000 on turnover of €2.87 million in the year to December 31st last. In a statement Zamano said that the business had grown rapidly and was expected to generate a figure significantly in excess of this in 2007. Eirborne has over 100,000 subscribers to its entertainment services, such as ringtones, wallpaper, music and video downloads.
Zamano's chief executive John O'Shea said that Eirborne was complementary to Zamano's existing business, since it sells successfully on the web, while Zamano to date has primarily provided services to companies which market their mobile content through press and TV advertising. The two companies also operate in the same geographical markets, primarily Ireland, the UK and Australia.
Eirborne was founded by industry veterans Gerard O'Keefe and Paul Coyle. Its content offerings are primarily aimed at the teenage and young adult markets. One of the features on its portal at www.veronicasmoco.com is the "Bikini Bulletin", which features models reading sports news.
