Mauj Mobile, People Group’s Mobile Value Added Service company has announced its acquisition of UK based Mobango Ltd. The financial details of the deal including the exact price offered, cash deal or equity stake, etc have not been released.
Mobango is a User Generated content store. It has a database of about 35000 free mobile applications. It is estimated to be second largest in the world after GetJar Inc.
Whenever, an acquisition takes place and that too a global acquisition, there are specific reasons involved. The acquired company, assets, brand, etc has to fit well into the acquiring company’s long term as well short term mission and vision. There has to be a clear value addition through the new acquisition. So, let us analyze the value addition, Mauj Mobile is expecting or can expect from its acquisition of Mobango Ltd.:
- Direct entry into the GLOBAL mobile app marketplace and that too almost at the top place.
- Access to Mobango’s global audience (both users and developers) for Mauj Mobile’s existing as well as any new services in the future.
- Access to Mobango’s huge application developer community.
- Direct cash flow as Mobango is currently a profit generating entity.
External factors which would make the deal more beneficial for Mauj mobile
– Expected roll out of 3G services in India
– Increased penetration of smartphones
