Mandalay Digital Group Completes Acquisition of mia in Asia Pacific
Acquisition Will Enhance Revenue and Cash Flow
Expands Distribution Channel for Digital Turbine and Enhances Content Offerings and Services
LOS ANGELES, April 12, 2013 /PRNewswire/ -- Mandalay Digital Group, Inc. (OTC Markets: MNDL) today announced it has closed the acquisition of mia, a leading mobile solutions provider based in Australia. mia has extensive content licenses with major brands, a proprietary content management system and billing integration. Its customers include tier-1 operators such as Vodafone Hutchison Australia, SingTel Optus and Telstra.
"Our acquisition of mia enables us to expand the Digital Turbine footprint into the Asia Pacific region while also allowing us to leverage key synergies between the companies including distribution channels, content, product offerings, services and personnel," stated Peter Adderton, chief executive officer of Mandalay Digital Group. "mia is a proven company with an established and profitable business model that we expect to add approximately $13 million to Mandalay Digital Group revenues over the next 12 months and enhance our cash flow profile. The acquisition is another example of Mandalay's strategy of acquiring companies that add both immediate financial growth and further our strategic initiative of creating the preeminent content management platform for OEM, carrier and media partners across the globe."
The Digital Turbine technology platform allows media companies, mobile carriers and their OEM handset partners to take advantage of multiple mobile operating systems across multiple networks, while maintaining their own branding and personalized, one-to-one relationships with each end-user.
Please see the Current Report on Form 8-K we previously filed today for material information about the purchase consideration, financing terms and other material aspects of the mia transaction. Such Current Report can be accessed through the SEC's website at www.sec.gov.
About Mandalay Digital Group Mandalay Digital Group is at the convergence of internet media content and mobile communications. It delivers a mobile services platform that works with mobile operators and third-party publishers to provide portal management, user interface, content development and billing technology that enables the responsible distribution of mobile entertainment. Mandalay Digital is headquartered in Los Angeles and has offices in Europe, Israel and Latin America to support global sales and marketing. For additional information, visit www.mandalaydigital.com.
About mia Founded in 2003, mia enables experiences on connected devices by enabling the delivery of content and applications to multiple devices, across any network, in any format. mia's Sphere platform enables carriers, media companies and brands to work together, providing the best user experience and lowering the cost of delivery. Today mia facilitates more than 800 live services including being the second largest digital music retailer in Australia. For additional information, visit http://www.mia.com.au/.
Forward Looking Statement
Statements in this news release concerning future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements. When used in this news release, the words "anticipate," "believe," "estimate," "expect", "will", "seeks", "should", "could", "would", "may" and similar expressions, are intended to identify such forward-looking statements.
Our actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements as a result of a variety of factors, such as; changes in international regulatory and compliance requirements that could restrict our ability to develop, market and sell our products; social, political or economic instability or recessions; diminished protection of intellectual property in some countries outside of the United States; difficulty in hiring, staffing and managing qualified and proficient local employees and advisors to run international operations; the difficulty of managing and operating an international enterprise, including difficulties in maintaining effective communications with employees and customers due to distance, language and cultural barriers; differing labor regulations and business practices; higher operating costs due to local laws or regulations; fluctuations in foreign economies and currency exchange rates; difficulty in enforcing agreements; the potential impairment of tangible assets, intangible assets and goodwill acquired in acquisitions; and potentially negative consequences from changes in or interpretations of tax laws, post-acquisition. Other factors include uncertainties as to ability to raise new capital on acceptable terms or at all, ability to identify and consummate roll-up acquisitions targets, levels of orders, ability to record revenues, release schedules, finalization and market acceptance of new products, changes in economic conditions and market demand, pricing and other activities by competitors, and other risks including those described from time to time in Mandalay Digital Group's filings on Forms 10-K and 10-Q with the Securities and Exchange Commission (SEC), press releases and other communications.
Any of these factors may, individually or as a group, have a material adverse effect on our business and results of operations.
We do not undertake any obligation to update any forward-looking statements. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on known results and trends at the time they are made, to anticipate future results or trends.
Brett Maas, Managing Partner
SOURCE Mandalay Digital Group, Inc.