SITO Mobile, the mobile engagement platform provider, yesterday announced it had acquired Hipcricket‘s mobile advertising business at a total purchase price of $3.7m.
SITO Mobile provides a mobile engagement platform for brands
Jerry Hug, CEO, SITO Mobile, says:
“This transaction marks the successful culmination of a process we began over a year ago. It now provides us with our most coveted asset within Hipcricket, and represents a major growth catalyst for SITO Mobile in many ways. First, we add a great team of experienced mobile advertising professionals that will enable a smooth transition and continued growth within the mobile advertising industry. Second, due to Hipcricket’s expansive network, we are stepping into many great new relationships with marquee advertising clients. Additionally, we now have the ability to integrate the best features of Hipcricket’s technology, one that will help us continue to improve and enhance the breadth and performance of SITO Mobile’s proprietary Location Based advertising platform. Lastly, we believe that the balance sheet improvements made this fiscal year, including this transaction, have advanced the Company toward executing on the plan to list our shares on a national exchange.”
Indeed, this purchase will enable SITO to explore new streams of revenue for its mobile ad business through Hipcricket’s already existing relationships with marketers. It expands SITO Mobile’s product offerings through the addition of Hipcricket’s adServe platform. The latter helped Hipcricket generate almost $30m in revenue over the last 30 months.
In June this year, SITO announced that it upgraded its platform to comply with OpenRTB 2.3 standards by the Interactive Advertising Bureau (IAB). In addition, the company recently partnered with Millennial Media to include Deal ID transactions for real-time bidding.