Singapore Telecommunications (SingTel) is not only restructuring its core business, it is also getting into mobile marketing.
The telco today announced that it has signed an agreement to acquire Amobee, a U.S.-based provider of mobile advertising solutions to operators, publishers and advertisers globally.
SingTel fully intends to harness these opportunities to become not only the leading mobile advertising company in Asia Pacific, but also among the top three worldwide, the company said in a statement.
"SingTel plans to change the game in this industry by delivering the next generation relationship marketing tool for brands to give them more scope to deepen their one-on-one engagement with different audiences across different countries," the company said.
SingTel has over 400 million mobile customers, in 25 countries, including Bangladesh, India, Indonesia, Pakistan, the Philippines and Thailand. By adding Amobee to its stable, the company will have capabilities with a strong technical platform that serves ads, banner as well as video ads and an experienced team in mobile advertising.
"The mobile advertising market is nascent and has significant potential for mobile operators, who are able to provide differentiated solutions across smartphones and feature phones, giving brands a better return on their marketing spend," said Allen Lew, CEO Group Digital L!fe (designate). "We want to capture that growth in developed and emerging markets, starting with this acquisition. SingTel brings better value to customers as they are in control of the promotional message they receive. Likewise for brands, they will be able to reach out to the customers who are interested in their products and minimise wastage of ad spend."
Founded in 2005, Amobee has been generating strong year-on-year revenue growth. Under the agreement, SingTel will pay about US$321 million for this acquisition.
SingTel will partner Amobee to build a strong independent company that will serve operators, publishers, advertisers and agencies with leading edge mobile advertising technology and services, the telco said.
Headquartered in Silicon Valley, Amobee's management team will remain in active control of the company.
"We are delighted to partner SingTel to continue our leadership in mobile advertising," said Trevor Healy, Amobee CEO. "SingTel and Amobee have a shared a vision of the future of mobile marketing and by leveraging each other's strengths, we will be able to advance the industry on a global scale at a faster pace."
The transaction is subject to certain conditions precedent, including satisfaction of applicable regulatory requirements, and is expected to complete before June 2012, the telco said in its statement.
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