Sale of Red Circle Technologies Limited
Dublin based zamano, a leading provider of digital entertainment to mobile devices, has agreed to acquire the entire issued share capital of Red Circle (www.red-circle.com) for up to EUR 24.4 million. The initial consideration and the additional consideration will be split 75% cash and 25% in zamano shares. The cash element of the consideration will be funded by a new loan facility with Bank of Scotland (Ireland).
zamano develops, promotes, and distributes digital entertainment such as mobile content and interactive services with an advanced technology platform. Key features of zamano’s Enlarged Group’s growth strategy include acquisitions, territorial expansion, and the development of technological capabilities. The Red Circle acquisition more than doubles zamano’s revenue on a pro-forma basis and provides significantly increased scale in the UK, Ireland and Australia as well as an emerging presence in the strategically important US market. During the past five years, zamano has made a number of strategic acquisitions leading to a multi-branded suite of offerings. Red Circle, the fifth acquisition, will expand zamano’s suite of mobile brands serving a range of demographics in four separate geographic markets and triple the active subscriber base. The Company will continue to seek further organic and inorganic opportunities for growth in line with the strategy.
Red Circle, a private Dublin-based leading provider of digital entertainment to mobile devices has over 500,000 active subscribers in the UK, Australia, USA and Ireland. Red Circle’s core business is the provision of content to consumers for the personalization of mobile devices. Red Circle delivers its B2C content and applications via SMS and WAP. Since its incorporation in 1998, the company has demonstrated significant organic growth in the digital entertainment to mobile devices sector. Red Circle monitors evolving market trends and mobile device development with a management information system. This system allows real time consumer statistical monitoring for facilitation of a highly targeted analytical approach, thereby ensuring the most effective return on advertising investment.
John O’Shea, Managing Director of zamano, said:
“This is a transformational deal for zamano and brings together two successful mobile technology companies, creating an enlarged company which will operate on a global level. I am delighted to welcome the Red Circle team, led by Cathal Fay, to the Group and look forward to working with them to ensure the continuation of their strong track record of growth and innovation.”
Corporate Finance Partners acted as an advisor to Red Circle Technologies Limited.