Affle India jumps post acquisition of Spain-based Mediasmart

Mobile marketing platform, Affle India Limited, on Monday, jumped as much as eight per cent after the company announced that it has signed a definitive agreement to acquire Mediasmart Mobile, Spain-based mobile technology company.

In an exchange filing released after market hours on Friday, the company stated that they are excited about their first acquisition in Europe. They believe that the acquisition of Mediasmart will carry a great strategic merit as it will strengthen Affle’s Cost per Converted User (CPCU)-based platform as well as a business model for omnichannel advertisers.

Anuj Khanna Sohum, MD and CEO at Affle said that the acquisition would also enable the company to expand into Mediasmart’s strong holding markets like US and Europe as well as enter into newer developing markets like Latin America.

As per the deal, 5.12 million Euros (about Rs 40.91 crore) including contingent consideration, will be paid for acquiring 100 per cent stake as well as economic rights of Mediasmart employees, which will be subject to certain performance conditions for a period of four years. Besides, 94.78 per cent shares would also be transferred on or before March 31, 2021.

At the time of market closing on Monday, the stock of Affle (India) Ltd was trading at Rs 1,802.95, up by 0.47 per cent against its previous close of Rs 1,794.60 on BSE.