Call Genie Inc. is buying the assets of data analytics and mobile advertising company VoodooVox Inc. As a result of the deal, SoftBank Capital becomes a new shareholder in Call Genie. Under the terms of the deal, Call Genie will issue 11.2 million shares of to VoodooVox shareholders, as well as pay an additional $1.8 million in cash.
Call Genie Inc. (TSX:GNE) is pleased to announce that it has entered into a Definitive Agreement to acquire the assets of VoodooVox, Inc.(“VoodooVox”), a US-based data analytics and mobile advertising network. The acquisition is intended to enable Call Genie to further expand its diverse product offering and move deeper into the rapidly expanding mobile advertising market.
VoodooVox provides real-time demographic information on phone calls and mobile ad traffic. Working with its own proprietary information and data provided by third party aggregators, VoodooVox enables companies to gain valuable insight into their call volume and mobile game/application activity.
Call Genie expects to deploy the VoodooVox Analytics product in an effort to further strengthen its position in Pay Per Call advertising. “The more pay per call advertisers know about their callers, the more success they’ll have with their campaigns,” said Michael Durance, President and CEO of Call Genie. “Our goal is to create a smarter mobile ad network, and VoodooVox gives us audience insights that benefit key stakeholders in the mobile advertising ecosystem.”
“VoodooVox has assembled an impressive 300M record phone directory of individuals and businesses,” said J. Scott Hamilton, President and CEO of VoodooVox. “We have paid particular attention to mobile phone numbers, and believe we have created the reference data source for rich demographic information on cell phone numbers. Through our library of APIs, this information source can be easily integrated into carrier platforms and mobile ad serving networks.”
The Company expects to complete this transaction in January 2012. Completion is subject to the satisfaction or waiver of a number of conditions, including approval by the Board of Directors of Call Genie and the receipt of all necessary third party and regulatory approvals (including the approval of the TSX).
As noted in the Company’s Management Proxy Circular, dated as of December 2, 2011, the shareholders of Call Genie will be asked to vote on a resolution to approve the name change of the Company to VoodooVox Inc., at the special meeting of shareholders scheduled for December 29, 2011. Management and the directors of the Company believe the name “Call Genie” does not adequately reflect how the business of the Company has evolved since 2000.
As consideration for the transaction, the Company has agreed to issue 11,250,000 Common Shares of Call Genie to shareholders of VoodooVox Inc., as well as pay an additional $1,800,000 in cash over a period of time from positive Call Genie net income. As a result of the transaction, new shareholders in Call Genie will include SoftBank Capital.
“This acquisition is another important step for Call Genie,” said Steven Murray, Partner, SoftBank Capital. “The analytics capability VoodooVox brings to the combined company provides a compelling differentiator that should assist Call Genie to enhance its presence in the mobile advertising space.”
About Call Genie Inc.
Call Genie is a leading global solutions provider in mobile local search and mobile digital interactive advertising. Call Genie enables traditional industries to move to new business models that support the connection of mobile consumers and local merchants. Solutions provided include search and advertising serving technology and services that utilize advanced wireless networks as well as the mobile internet to enable a “mobile ecosystem” that encompasses advertisers, service providers (e.g., internet yellow pages, carriers, network broadcasters) and mobile users. Currently, Call Genie solutions are deployed in 12 countries around the world.