Augme Technologies Enters into Agreement to Purchase Assets of Mobile Marketing and Advertising Leader Hipcricket
Augme Technologies, Inc. (OTCBB: AUGT) (“Augme”), a leader in full service mobile marketing solutions utilizing patented technology that enables the world's largest brands to plan, build, deploy and track mobile marketing campaigns with their target audiences, today announced that it has signed a definitive agreement to purchase substantially all the assets and the business of Hipcricket, Inc., a leading mobile marketing and advertising firm headquartered near Seattle, Washington. The acquisition, which is subject to Hipcricket shareholder approval, Augme’s investment banker approval and final due diligence, is expected to close at the end of August 2011. The purchase price of $44.5 million will be comprised of $6 million in cash and $38.5 million in Augme common stock. In addition, the transaction calls for a twelve-month earn-out payment valued at up to an additional $27.5 million, which may be paid in cash or stock at Augme’s discretion provided that the transaction remains a tax-free reorganization. Concurrently with the closing of the acquisition, Augme expects to hire all of Hipcricket’s employees and the current Hipcricket team will continue to service Hipcricket’s business.
Following completion of the purchase, Augme believes that it will be the preeminent end-to-end mobile marketing solution provider for consumer brands, agencies, pharmaceutical/health, and media companies. The combined companies’ client roster is expected to include over 300 customers, including:
• ten of the world’s top twenty pharmaceutical companies;
• six of the largest media companies in the world;
• four of the largest advertising agencies in the world;
• three of the leading fast service restaurant groups in the world; and
• one of the largest food companies in the world.
“The agreement to acquire the assets of Hipcricket follows our previously announced acquisition of JAGTAG, which was completed on July 22, 2011,” noted Paul Arena, Chief Executive Officer of Augme Technologies, Inc. “We expect the complementary resources of Augme, JAGTAG and Hipcricket, when combined, will allow Augme to provide the most powerful best-of-breed mobile marketing solutions to global brand name leaders, backed by strong intellectual property portfolios, including patented technology and software-as-a-service, (“SaaS”) technology platforms.”