MIND CTI to Acquire German Based Message Mobile
March 26 2019 - 7:06AM
MIND C.T.I. LTD. – (NasdaqGM: MNDO), a leading provider of
convergent end-to-end prepaid/postpaid billing and customer care
product based solutions for service providers as well as unified
communications analytics and call accounting solutions for
enterprises, today announced that it has signed a definitive
agreement to acquire Message Mobile GmbH, a leading provider of
enterprise messaging, communication and payment solutions, based in
Lüneburg, Germany.
Message Mobile, an independent subsidiary of the
Materna Information & Communications SE in Dortmund, Germany,
is an international specialist for customized mobile communication
solutions with more than 15 years’ experience in the mobile
industry. Its messaging platform enables enterprises to easily
communicate with clients and partners via text / SMS, instant
messaging or voice. Message Mobile allows enterprises to
communicate with and send marketing messages to customers via
instant messenger services like WhatsApp, Facebook Messenger and
Telegram. Message Mobile also offers mobile payment solutions that
use phone bill charging for a wide range of applications such as
mobile parking payment.
Monica Iancu, Chief Executive Officer of MIND,
commented: "We are thrilled with this acquisition that satisfies
the criteria we defined: proven revenues, complementary technology
or geography and expected accretion to earnings within two to three
quarters. We believe that messaging needs are expanding worldwide,
be it in traditional text (SMS) or in instant messaging. We expect
that Message Mobile’s solid reputation and proven expertise in the
German market, its strong existing customer relationships, and the
great team of highly experienced professionals in the mobile
messaging industry located in Germany puts MIND in a good position
for increased success in the European markets. Given our cash
position and our experienced organization, we believe that we are
well positioned and have the required resources to respond to
market needs and continue with our dividend policy and at the same
time continue targeting potential acquisitions that could benefit
the company's growth."
Message Mobile will operate as the German
headquarters for MIND and will be led by Gilad Parness, VP
Enterprise Solutions, a member of the current MIND management team.
Gilad has been with MIND since 2004, leading engineering, support
and sales teams. Dr. Martin Hecker, Message Mobile’s founder, will
continue consulting the MIND group for the foreseeable future.
"The team at Message Mobile is definitely
enthusiastic about becoming part of a publicly listed company with
global reach, financial strength and focused on our markets. This
transaction allows Message Mobile to reach a new level of
professionalism by combining the strengths of the two companies. We
will be able to refine our products and services and we will have
the unique chance to put our growth strategy
into practice," said Dr. Martin Hecker, "and our existing and
potential customers will benefit from the extended
capabilities."
MIND acquires Message Mobile for up to
approximately $3 million in total, $2.25 million in cash and
approximately $0.75 million in 345,908 MIND shares to Dr. Martin
Hecker, Message Mobile’s founder. The transaction is expected to be
marginally accretive to our earnings per share, excluding
acquisition-related items, in fiscal 2019 and thereafter. MIND’s
financial results will include the acquired company’s results
starting the second quarter of 2019.
The acquisition is anticipated to be completed
shortly, subject to customary closing requirements.
About MINDMIND
C.T.I. Ltd. is a leading provider of convergent end-to-end billing
and customer care product-based solutions for service providers as
well as unified communications analytics and call accounting
solutions for enterprises. MIND provides a complete range of
billing applications for any business model (license, managed
service or complete outsourced billing service) for Wireless,
Wireline, Cable, IP Services and Quad-play carriers. A global
company, with over twenty years of experience in providing
solutions to carriers and enterprises, MIND operates from offices
in the United States, Romania and Israel.
Cautionary Statement for Purposes of the "Safe
Harbor" Provisions of the Private Securities Litigation Reform Act
of 1995: All statements other than historical facts included in the
foregoing press release regarding the Company's business strategy
are "forward-looking statements." These statements are based on
management's beliefs and assumptions and on information currently
available to management. Forward-looking statements are not
guarantees of future performance, and actual results may materially
differ. The forward-looking statements involve risks,
uncertainties, and assumptions, including the risk that the
proposed acquisition will not be consummated due to the failure to
satisfy the closing conditions or otherwise, that the acquisition
will not succeed in achieving its intended goals due to
competitive, personnel, technological or other integration issues
and the risks discussed in the Company's filings with the United
States Securities Exchange Commission. The Company does not
undertake to update any forward-looking information.
For more information please
contact:Andrea DrayMIND CTI Ltd.Tel:
+972-4-993-6666investor@mindcti.com
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