Page 30 - IACC Newsletter June 2013 Issue 11

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Merger and acquisition activity among Indian companies is gaining strength in sectors such as cloud computing and big
data analytics. This month software exporter Wipro said it is investing $30 million (Rs 164 crore) for a minority stake in
New Jersey headquartered big data analytics firm, Opera Solutions.
In 2011, US-based Citrix Systems paid over Rs 1,000 crore to acquire cloud computing firm Gluster, a cloud
computing startup, was bought by Red Hat for about Rs 667 crore in an all-cash deal.
Chennai based TVS logistics acquires Missouri headquartered Wainwright
TVS Logistics has acquired 100% stake in US-based unlisted supply chain firm Wainwright Industries. The acquisition was
done to build capabilities like cross docking . R Dinesh, managing director of TVS Logistics said that this marked the end
of phase one of acquisition process. "We believe these services would be in demand in India soon as volumes increase,"
he said.
Dinesh said that revenues of Wainwright were Rs 125 crore and TVS would pay Rs 25 crore initially for the deal and while
the remaining would be paid after two years, subject to performance of the unit. The second payment tranche could
range between Rs 25 to Rs 50 crore depending on performance milestone achieved by the unit.
Wainwright is a 65-year-old family owned business. Post-acquisition, David Robbins, the promoter of the target unit, will
continue to lead this unit and the existing management has also been retained. "We are the second generation and
there's no third generation to manage it further. So we looked for deals which would ensure continuity. We split our
manufacturing and logistics division and were sold, to an American firm and TVS respectively," said Robbins.
OnMobile to buy Livewire Mobile for $17.8 million
Bangalore-based value-added services (VAS) company OnMobile has entered into a definitive agreement to acquire the
business assets and liabilities of US-based mobile entertainment solutions company Livewire Mobile for $17.8 million.
The new US-based entity will be called OnMobile Live Inc., a wholly-owned subsidiary of the company.
OnMobile will pay $17.8 million for purchase of LiveWire's business assets and certain liabilities, subject to certain
contingent payments. The purchase will also include purchase of stock of Fonestarz Media, the managed services arm of
Livewire based in the UK. OnMobile offers an array of products in mobile entertainment, search and discovery and
mobile cloud services.
Boston-headquartered Livewire Mobile, established in 1983, provides an integrated suite of solutions including full track
music, ringback tones, ringtones and infotainment services. Livewire Mobile currently powers ringback tone and mobile
music solutions for Sprint, MetroPCS, and Public Mobile amongst others.
OnMobile is already one of the largest B2B digital music service provider providing music services for top telecom
operators in Asia, Latin America, Africa and Europe. With the acquisition of Livewire Mobile, OnMobile will now expand
its music and ringback tone (RBT) services to leading operators in North America.
Mouli Raman, CEO & co-founder of OnMobile Global said, "The acquisition of Livewire Mobile will help us consolidate
our global leadership position in RBT and music by firmly establishing our presence in North America for these services.
This augments our strong market presence of mobile cloud services that we currently provide to major mobile operators
in North America."
Matthew Stecker, president and CEO of Livewire Mobile said, "We're thrilled to bring the power of OnMobile's scale and
infrastructure to boost our existing and planned carrier deployments and services. Upon evaluation of several strategic