Velti agrees to sell US, UK and India mobile marketing businesses to Blackstone’s GSO

Velti said Monday that it has agreed to sell its mobile marketing businesses in the U.S., UK and India as well as some of its U.S. based advertising businesses to GSO Capital Partners, Blackstone‘s credit division. The transaction is expected to close before the end of 2013. Under terms of the deal, Velti has filed for chapter 11 while GSO has committed to provide up to $25 million in financing.


SAN FRANCISCO, Nov. 4, 2013 /PRNewswire via COMTEX/ — Velti plc, a leading global provider of mobile marketing and advertising technology, announced today that it has agreed to sell its U.S., U.K., and India mobile marketing businesses and certain of its U.S.-based advertising businesses to affiliates of GSO Capital Partners LP (“GSO”), the credit division of Blackstone BX +1.96% . The current proposed transaction includes the sale of business lines operated by Velti Inc. and Air2Web Inc. in the U.S., Air2Web India, and Velti DR Limited and Mobile Interactive Group, Ltd. in the U.K.
“We are pleased to have reached an agreement with GSO, a firm with substantial financial resources that understands the value of Velti’s state-of-the-art technology, industry-leading solutions, and global presence,” said Velti Chief Executive Officer Alex Moukas. “Both this sale agreement and GSO’s recent acquisition of our secured debt demonstrate GSO’s commitment to providing the business with the support necessary to grow and prosper.”
All operations included in the proposed sale agreement will continue as normal throughout the sale process. The proposed sale is expected to close by the end of 2013.
“Importantly, this process will be virtually invisible to customers, all of whom can continue to rely on Velti to provide premier technology and solutions to support their own businesses,” Mr. Moukas said.
Under the terms of the proposed asset purchase agreement and to facilitate the sale, Velti’s U.S. operations, including Velti Inc. and Air2Web, Inc., today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware to implement the sale under Section 363 of the Bankruptcy Code. While the sale agreement includes the U.K.-based MIG business line and Air2Web India, the U.K. and India-based operations are not included in the Chapter 11 filing.
Additionally, GSO has 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.
The filing does not include any of the Company’s operations in the U.K., Greece, India, China, Brazil, Russia, the United Arab Emirates, or any other jurisdictions outside the U.S. These entities, along with the mobile marketing businesses in the U.S., U.K., and India, are continuing normal business operations.
Additionally, the businesses not included in the current proposed sale agreement continue to grow and deliver improved results. Velti’s Performance Mobile Marketing Business will also continue to provide services to the businesses named in the current purchase agreement.
“We look forward to working with the Company to execute on the growth potential of the mobile marketing industry,” said Scott Eisenberg, of GSO Capital Partners. “The increasingly important need for businesses to have effective and reliable mobile communication with their customers requires a sophisticated and scalable technology. We believe that the Velti platform, including the Air2Web and Mobile Interactive Group acquisitions, is well positioned to grow share in this market.”
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