Boston, MA 02/12/2014 (wallstreetpr) – Sungy Mobile Ltd (NASDAQ:GOMO) which is a leading provider of mobile internet products and services worldwide has announced in a press release of its acquisition of GetJar Inc. which is a privately owned mobile ad company based in California. The acquisition according to the press release is worth $5.3 million with Sungy Mobile having the option of issuing a total of 1,443,074 Class A ordinary shares to GetJar as early as 2016 if certain performance according to the agreement is met.
As part of the agreement Sungy Mobile may grant equity incentives to GetJar management and key personnel who will be employed under the new ownership. Sungy Mobile Chief Executive Officer could not hide his excitement and optimism once the deal was announced. He was quoted as saying “We are pleased to expand our global footprint with our first international acquisition, Our acquisition of GetJar provides our platform with state-of-the-art mobile data analytics capabilities that will support our mobile advertising research and development initiatives, and accelerate our product development process”.
Sungy Mobile looking ahead
Going forward Sungy Mobile Ltd (NASDAQ:GOMO) intends to use the new acquisition as a base for the venturing more into the mobile Ad sector that has been found to have a good return on equity. This will essentially accelerate Sungy Mobile development process thereby building service offering altogether. Sungy Mobile has been around for quite some time since 2004 and looking for profitable ventures of expanding its sources for revenue collection.
Sungy having debut at the NASDAQ in November 2013 has seen its share price rise from $11.22 to the $21 margin that it is currently trading at. With the acquisition of GetJar, a lot is being awaited to be seen of what impact it will have. As long as GetJar performs to its full potential then the fortunes of Sungy mobile are always sure to change.
Sungy Mobile Ltd (NASDAQ:GOMO) currently commands a market capitalization of $680 million with the company’s Go launcher software being rumored to be behind Facebook’s failed Home offering. The company currently commands 325 million years across the globe with 70% being outside china and 87 million of them being active users.
The acquisition of GetJar can be seen as one of the driving force that will see the upsurge in Sungy mobile users with its range of products. Sungy Mobile Ltd (NASDAQ:GOMO) currently estimates total revenue for the year F2014 to be about $80 million against $53.7 million that was recorded in F2013.