Vringo, which offers video ringtones and personalization solutions for mobile devices, this morning announced that it has signed a (non-binding) Letter of Intent to acquire substantially all of the assets of m-Wise, a New York-based provider of enabling technologies for the mobile entertainment and marketing industries.
m-Wise provides a SaaS platform used by content owners and service providers to manage, deliver and monetize mobile entertainment, content and apps.
The platform is said to be used for over 300 applications across more than 50 mobile networks by a host of international content and media providers, powering over three million daily mobile service transactions worldwide.
According to the press statement, m-Wise has handled over one billion mobile transactions in the aggregate since it was founded in March 2000.
These m-Wise-enabled applications include content delivery services, ringtones, music, video, games, information services, alerts and advertising and promotions, all of which were developed and delivered from the cloud on a hosted basis.
For the nine months ending September 30, 2010, m-Wise reported sales of $2.1 million, gross profit of $1.2 million and a net loss (including non-cash, stock-based expenses and options accounting) of $0.8 million.
Vringo says it believes that the m-Wise acquisition will be cash-flow accretive with the potential to reduce Vringo’s overall burn rate in the first full year of combined operations.
Here are the terms of the Letter of Intent:
Vringo will issue m-Wise 1.9 million shares of its common stock, provide m-Wise’s management with a retention package comprised of options to purchase 500,000 shares of common stock, and assume and pay over a two year period certain of m-Wise’s expenses and related costs in the amount of $615,000.
Vringo will also issue a five-year promissory note for $320,000 convertible into 200,000 shares of its common stock for certain services provided in connection with the transaction.
Vringo provides a carrier platform currently deployed for international partners in six markets.
The company’s cloud-based distributed application architecture enables the carrier’s subscribers to browse and download mobile videos, set them as video ringtones and share them with friends.
m-Wise, Inc., through its subsidiary, m-Wise Ltd., engages in the development, manufacture, marketing, and support of software and hardware-based content and service delivery platform. The company markets its wireless application platform under the brand, MOMA platform, which is an end-to-end application and middleware platform that includes monitoring, billing, reporting, content management, customer care, application development, generic application engines, third-party provisioning, and centralized third-party management tools. Its platform enables cellular operators and wireless application service providers to provide data and...
Founded in 2006, Vringo (NYSE Amex: VRNG) is a provider of software platforms for mobile social and mobile video services. With its award-winning video ringtone application and other mobile software platforms - including Facetones™ Video Remix and Fan Loyalty - Vringo transforms the basic act of making and receiving mobile phone calls into a highly visual, social experience. Vringo’s video ringtone service enables users to create or take video, images and slideshows from virtually anywhere and turn it into...