LITTLETON, Mass. & CAMBRIDGE, United Kingdom--(BUSINESS WIRE)--Livewire Mobile, Inc. (OTC Markets: LVWR), a leader in providing end-to-end managed mobile entertainment solutions for network operators and consumer device manufacturers, announced today that it has entered into a definitive agreement for substantially all its business assets and certain liabilities to be acquired by OnMobile Global Limited, a global leader in telecom value-added services.
Under the terms of the agreement, Livewire Mobile will receive $17.8M USD for its existing business assets subject to certain escrow and performance contingencies. It is the Company's expectation that the holders of senior secured convertible notes will convert a majority of their notes and vote the converted shares in favor of this transaction, which could amount to approximately 80% of the then fully-diluted outstanding shares.
"We’re incredibly excited to become part of OnMobile to create the world’s leading carrier VAS company,” said Matthew Stecker, President and CEO of Livewire Mobile. “Upon evaluation of several strategic alternatives made possible by our recent revenue growth, our Board concluded that this transaction was the best path to maximizing value for our shareholders and for our customers."
"OnMobile is a well-respected leader in delivering value-added services to mobile operators around the world with a very complementary suite of mobile services and geographical footprint to ours. Our customers will be well-served not only by the one-stop access to additional mobile entertainment services, but also by OnMobile’s dedication to quality and innovation and their substantial development resources,” said Mr. Stecker.
“We have great respect for the strong long-standing relationships that Livewire Mobile has built with its customers as well as its expertise in delivering innovative mobile music services,” said Mouli Raman, CEO of OnMobile Global Limited. “We fully appreciate the value that Livewire Mobile provides and look forward to working together with Livewire’s employees, partners, and customers as we continue to invest towards positively impacting people’s lives using mobile technology.”
The transaction is targeted to close on June 30 upon satisfaction of various customary closing conditions.
The resultant new U.S.-based entity, OnMobile Live, LLC., will incorporate all of the services provided by Livewire Mobile, including its wholly-owned U.K. subsidiary, FoneStarz, and plans to retain and grow substantially all of Livewire’s existing offices, personnel, platforms and products worldwide.
About Livewire Mobile
Livewire Mobile, Inc. (OTC Markets: LVWR) is a Mobile Internet powerhouse with one of the most comprehensive one-stop digital entertainment solutions for network operators, consumer device manufacturers, brands and media companies entering the mobile market. The company’s integrated suite of content services includes applications, video, games, ringback tones, ringtones, full-track music, e-books and more as well as application and portal development, mobile advertising solutions, integrated content publishing and merchandising, and turnkey managed VAS operations. For more information, please visit www.livewiremobile.com.
Livewire Mobile is a registered service mark. Other trademarks are properties of their respective owners.
About OnMobile
OnMobile [NSE India: ONMOBILE], headquartered in Bangalore, India, with services in 59 countries, is the leading Value Added Services [VAS] company for Mobile, Landline and Media Service Providers. OnMobile offers an innovative array of products in Mobile Entertainment, Search and Discovery, Data Services and Mobile Social Networking and is a leader in the VAS Managed Services industry. The products span a range of channels including SMS, Voice, Video, WAP, Web, USSD and On-Device Portals, enabling OnMobile’s 92 telecom and media customers to generate high revenues. With over 1600 employees worldwide, OnMobile has offices around the globe, including London, Paris, Madrid, Silicon Valley, Miami and Seattle.
Forward Looking Statements
Statements other than historical facts included or referred to in this Press Release are “forward-looking statements” including forward-looking statements about the expected closing date of the transaction, the conversion of senior secured convertible notes and favorable vote by holders of these notes, and OnMobile plans to retain and grow substantially all of Livewire’s existing offices, personnel, platforms and products worldwide. These statements are based on management’s expectations as of the date of this document and are subject to uncertainties and changes in circumstances. Actual results may differ materially from these expectations due to risks and uncertainties including, but not limited to, uncertainties with respect to the anticipated closing date of the transaction, conversion of senior secured convertible notes and favorable vote by holders of these notes, and OnMobile plans to retain and grow substantially all of Livewire’s existing offices, personnel, platforms and products worldwide. In addition, while management may elect to update forward-looking statements at some point in the future, management specifically disclaims any obligation to do so, even if its estimates change. Any reference to our website in this press release is not intended to incorporate the contents thereof into this press release or any other public announcement.
