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ECS BOTANICS HOLDINGS LTD — M&A Activity 2008
Jun 9, 2008
64818_rns_2008-06-09_47cb9dc9-9841-46f8-87f6-890a4319b6a9.pdf
M&A Activity
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ASX Release June 10, 2008
Mobi Limited & CommQuest Limited, Joint Company Release
CommQuest Completes MobiData Acquisition
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CommQuest Acquires 100% of share capital of MobiData Holdings Ltd
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50/50 revenue sharing between CQU/MBI for 30 months
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MBI revenue from deal capped at AUD$16 million
Melbourne, Australia, 10 June 2008 , Mobi Limited (ASX:MBI) CommQuest (ASX:CQU), CommQuest will now be able to deliver worldwide mobile applications and ‘rich content’ services via SMS across its client base following the acquisition of MobiData’s unique multi-platform application system.
“CommQuest was interested in acquiring mobile applications to accelerate its fast growing SMS customer base and was pleased to find that it could source such technology right here in our backyard,” said CEO, CommQuest Mr. William Scott.
“Through the CommQuest/MobiData deal we have found a successful partner to commercialise and exploit our technology whilst also retaining the right to share in the benefits of such commercialisation and exploitation. CommQuest provides a great home for our technology given its knowledge and experience within the growing SMS marketing sector” said CEO, Mobi Mr. Michael Abela.
In April 2008, CommQuest paid Mobi $200,000 for an opportunity to exclusively examine the potential of Mobi’s technology.
Both companies announced today that they have entered into a sale agreement in relation to the acquisition which allows CommQuest to acquire the MobiData technology and cross market the opportunity to its client base. Mobi Limited will benefit in the commercialisation of its product by CommQuest through a revenue sharing arrangement agreed by the parties. The acquisition is expected to complete on July 1, 2008.
“It has been a win-win opportunity for CommQuest and Mobi and once again shows Australians that we can compete with the best when it comes to innovation in the fast growing IT space,” added William.
“CommQuest is a young, dynamic marketing company with significant domestic and international operations and an ideal channel to sell MobiData’s mobile applications and
service over the next thirty months. For Mobi Limited this represents a great outcome as we are able to share in future revenue with no downside risk or ongoing cost burden” said Michael. “The sale of MobiData allows Mobi to concentrate on its revenue generating entities, OneNetwork, AK Communications and Sholl Communications.”
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About Mobi
Mobi Limited (ASX:MBI) is Australia's Leading IP business telephony company and traditional business phone installer.
Mobi Ltd provides traditional phone installation and telephony services through its wholly owned subsidiaries Sholl Communications and AK Communications. The Company's other wholly owned subsidiary OneNetwork, provides business grade hosted IP telephony services.
About CommQuest
CommQuest listed on the ASX on the 15th November and brings together some of the best marketing and communication companies in Australia.
CommQuest provides a truly integrated marketing and communications solution for its clients. CommQuest’s group of operating entities provide a full range of marketing services which include strategic marketing, direct marketing, direct sales, public relations and public affairs, financial communications, digital and interactive marketing, mobile marketing, technology services, event management, advertising and media planning.
For further information contact:
William Scott Chief Executive Officer CommQuest Limited T: 03 9016 4099 M: 0411 182 444 www.commquest.com
Michael Abela Chief Executive Officer Mobi Limited T: 03 9698 7800 M: 0412 877 460 www.mobilimited.com.au