Mobile marketing and advertising technology company Velti Plc has closed the sale of its mobile marketing businesses in India, the US and the UK besides a part of its advertising business in the US to affiliates of GSO Capital Partners LP, which is the credit division of private equity behemoth Blackstone.
The deal includes sale of business line operated by Velti Inc and Air2Web Inc in the US; Air2Web India, Velti DR Ltd and Mobile Interactive Group Ltd in the UK and Velti Netherlands BV in the Netherlands.
Financial details of the transaction have not been revealed, but as part of the transaction GSO had committed to provide up to $25 million in debtor-in-possession financing, including a $10 million cash injection to support the operations included in the proposed sale, when the deal was announced in November last year.
"Under the new ownership, GSO provides us greater financial stability and the resources needed to continue to grow our business and improve our customers' experience. GSO understands and believes in our business," Jay Sheth, SVP & GM â€“ Mobile Marketing BU and chief executive officer and president of Velti India, said.
Under the terms of the pact, the US division of Velti had filed voluntary petitions under Chapter 11 of the US Bankruptcy Code with the US Bankruptcy Court for the District of Delaware to implement the sale under Section 363 of the Bankruptcy Code. However, operations in the UK and India were excluded from the filing.
Velti's mobile marketing and advertising technology and solutions enable brands, advertising agencies, mobile operators and media to implement targeted, interactive and measurable campaigns by communicating with and engaging consumers via their mobile devices.
Its platform, called Velti mGage, allows its customers to use mobile and traditional media to reach and engage targeted consumers, and convert them into customers.
Velti had acquired mobile customer relationship management provider Air2Web for $19 million back in September 2011. Founded in 1999 by Indian-origin entrepreneur Sanjoy Malik, Air2Web is into mobile messaging and marketing applications for enterprises and carriers.
On November 26, Velti announced its intention to voluntarily delist from NASDAQ, after it decided to close its mobile ad exchange business Mobclix and filed a voluntary petition under Chapter 7 of the US Bankruptcy Code to initiate an orderly wind-down of the business.
(Edited by Joby Puthuparampil Johnson)