NeoMedia Technologies' shopping spree is continuing, with the 10 million purchase of mobile agency Sponge. NeoMedia is buying Sponge for 3.45 million in cash and the remainder in NeoMedia shares, with an additional 2.5 million available under an earn-out clause if Sponge meets pre-determined earnings targets over the next two years.
The acquisition brings to five the number of mobile companies NeoMedia has bought in the past few weeks, following the purchase of Mobot, HipCricket Inc., 12snap and Gavitec AG - mobile digit.
NeoMedia President and CEO, Charles T. Jensen says the acquisition of Sponge gives NeoMedia a range of multinational world-class capabilities it believes to be unmatched in mobile marketing.
Our plan is to become a mobile marketing supercompany in Europe as the industry matures, and in the U.S. where market development is now well under way, says Jensen, while NeoMedia COO Martin Copus adds:
Sponge has the most battle-hardened platform in the mobile marketing industry. It has run more than 21,000 messaging applications, with 600 campaigns running simultaneously at present from voting to reverse auctions to m-coupons and many, many more. Now, as part of NeoMedia, those applications will be able to be accessed on the Mobile Internet via our PaperClick code-reader, GoWindow and CodeWindow.
Based in London, Sponge provides premium and non-premium mobile solutions in the U.S., Europe and Australia, focusing on tools that its customers deploy in an wide range of SMS- and MMS-based entertainment and mobile marketing applications. Sponge also develops handset software solutions for marketing and promotional agencies, and for media groups.
Sponge recently engineered and implemented Europes largest-ever on-pack promotion for its Walkers Crisps client, with more than 5% of the UK population participating. Sponge is currently rolling out this promotion in other European markets.