Local mobile services company iTouch has dipped into funds raised from its London listing, acquiring certain assets and brands of the interactive media and content division of Thus Plc for lb3.5 million in cash.
Chairman Ivan Fallon says the acquisition is in line with the company`s strategy of acquiring products and operations with the cash raised from its August 2000 listing on the London Stock Exchange.
According to Fallon, the acquisition will make iTouch one of the biggest players in interactive voice information in Britain and provide iTouch with a significant customer base to expand its mobile services, including SMS, WAP and PDA.
"Thus is a perfect fit with iTouch`s existing UK operation, providing us with the critical mass we have in some of our other markets, and some excellent brands with recurrent revenue streams," says Fallon.
"iTouch now has more than 70 programmers and developers around the world, and we believe we can leverage the Thus customer base, marketing our existing range of products and the new ones currently in the pipeline."
Latest interim figures from iTouch show the company increased its revenue five-fold to ₤6 million, although losses turned in for the same period amounted to ₤7 million.
The acquisition comes out of cash reserves of ₤44.2 million left in the bank at the end of the last reporting period.
Looking at Thus`s books, iTouch says in the five months to 31 August 2001 (based on unaudited figures), Thus achieved revenues of lb4 million with net tangible assets of lb900 000.
The acquisition brings with it a 14-year lease on the Thus offices in London, which will be used as base camp for iTouch`s UK operations and iTouch plc from the end of the year.
iTouch has operations in SA, the UK, Israel, New Zealand, Australia and Ireland. It also has representation in Greece, Indonesia and Thailand through a licensing agreement signed early this year with MIHH.
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