Taptica buys majority shareholding in Japan's Adinnovation
AIM-listed end-to-end mobile advertising platform Taptica has announced the acquisition of a majority shareholding in Japan's Adinnovation Inc for up to $5.7m, which is being funded from the company's cash resources.
Taptica said the deal forms part of its stated strategy to increase its presence in the Asia-Pacific region following the establishment of its office in Seoul in 2016. The company said it expects Japan will be the next key growth market for mobile advertising due to its developed mobile networks and strong proliferation of smartphones.
"The acquisition will accelerate the raising of Taptica's brand awareness in Japan and facilitate its regional and global market expansion. The acquisition follows the two companies working together under a partnership agreement, as announced earlier this year."
Taptica said it is focused on continued geographical expansion, establishing and growing its presence in ten hubs worldwide in the next three years: Russia, China, Germany, San Francisco, New York, Korea, Japan, India, South America and the UK.
The group has agreed to pay up to $5.7m for 57% of the issued share capital of ADI with approximately three-quarters payable immediately on closing and the remainder after 12 months based on ADI meeting certain targets.
In addition, Taptica has a call option to buy the remaining 43% of the issued share capital of ADI for a price of 8x net profit and for a period of six months commencing three years after closing. Thereafter, it has a put option for a period of three months to sell at a price of 7x net profit.
At 0840 BST, Taptica shares were up 2.5% to 374p.