Mobile phone services company Zamano has bought Dublin-based Red Circle in a reverse takeover worth up to €24.4m.
Red Circle provides digital entertainment to mobile devices with over half a million active subscribers in Ireland, the UK, the US and Australia. It had revenues of €31.1m for the year ended May 2007 and after tax profits of €3.3m.
Zamano says the deal will treble its subscriber base and and will double its revenues as it expands its sales in four separate markets. Red Circle is the company's fifth acquisition overall and the second this year.
The deal is subject to shareholder approval and an EGM has been arranged for December 12. If it is approved, the company says it will cancel its ordinary shares on the IEX and AIM and will apply for its enlarged share capital to be re-admitted on the two markets.
Zamano's board said it believes the deal will immediately enhance its earnings per share. It said it believes the acquisition is in the best interests of the company and its shareholders and recommend that all shareholders vote in favour of it.
'This is a transformational deal for Zamano and brings together two successful mobile technology companies, creating an enlarged company that will operate on a global level,' commented Zamano's managing director John O'Shea.
Zamano was advised by NCB Corporate Finance on the deal.
Shares in the firm closed up 9% in Dublin this evening.
