Buongiorno signs definitive agreement to acquire iTouch.
TELECOMWORLDWIRE-4 July 2007-Buongiorno signs definitive agreement to acquire iTouch(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com
A definitive agreement to acquire 100% of the share capital of iTouch Ventures Limited, a mobile entertainment products and services distribution company founded in 1995 in South Africa, has been signed by Buongiorno S.p.A. (MTAX STAR)(Italian Stock Exchange:BNG), a digital entertainment company.
iTouch, which has offices in 13 countries, distributes its content in 23 countries and has access to more than 500m mobile users via a multichannel strategy. It markets products directly to consumers through own brands and relationships with mobile network operators and media partners.
Buongiorno said the iTouch acquisition represents an important step in its strategy to establish a global organisation. It claimed the two companies will provide a worldwide footprint with a presence in many main markets including the US, UK, Australia, Benelux, Brazil, France, Italy, Mexico, South Africa and Spain.
The company confirmed that the iTouch management team, Oak Investment Partners (which currently holds 40% of the ordinary shares) and Goldman Sachs (which holds 20% of ordinary shares) will become shareholders in Buongiorno.
According to Buongiorno, the transaction is valued at EUR141m, of which it will pay EUR129m to iTouch shareholders, while absorbing iTouch's existing EUR12m of net debt. It confirmed the consideration will be satisfied partly in cash and partly in new Buongiorno shares, to be issued to iTouch shareholders in exchange for iTouch shares, with the EUR73.7m cash component to be funded by a new loan facility.
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|Title Annotation:||iTouch Ventures Limited, Buongiorno.it S.p.A.|
|Comment:||Buongiorno signs definitive agreement to acquire iTouch.(iTouch Ventures Limited, Buongiorno.it S.p.A.)|
|Article Type:||Brief article|
|Date:||Jul 4, 2007|
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