Globo Acquires Sourcebits Inc
Globo plc (LSE-AIM:GBO) the international provider of enterprise mobility management solutions and software as a service, announces it has acquired the services division of Sourcebits Inc., ("Sourcebits" or "the Company" http://www.sourcebits.com), a developer of mobile applications and proprietary products for enterprise customers.
This bolt-on acquisition is in line with Globo's strategic objective to build its presence in the enterprise mobility market, and will accelerate its progress as a Mobile Application Development Platform ("MADP") provider. Sourcebits will become part of Globo's Mobility Business Services division ("MBS"), providing substantial resources that will allow Globo to expand its offerings faster and to a broader marketplace, particularly the United States. Sourcebits' scale will immediately provide Globo with more powerful and compelling assets to compete for new clients and develop custom mobile applications with its flagship GO!Enterprise platform.
The services division of Sourcebits is based in San Francisco, California, with a significant development centre in Bangalore, India. Sourcebits has an established client base including Intel, SAP, P&G, The Coca-Cola Co., Bank of America, Columbia University and Hershey's. There is minimal overlap between the two companies' client bases.
Globo expects that the acquisition of Sourcebits will be earnings accretive in the first year as the Company has secured a significant pipeline of new contracts, providing strong visibility for 2014. The consideration, which is not disclosed as a selling condition, is paid in cash and the transaction is structured on a debt free and cash free basis.
Barry Ariko, Chairman of Globo, commented:
"The acquisition of Sourcebits is another significant step for Globo as we address the massive opportunity of the Mobile Application Development Platform market for enterprise customers.
The quality of skills, clients and strong branding that Sourcebits adds to Globo will allow us to compete for more and larger Mobile Application Development projects and take advantage of our GO!Enterprise/ GO!AppZone MADP offering.
Adding 167 Sourcebits' employees in San Francisco and Bangalore further strengthens our U.S. presence and establishes our presence in India. We believe a global footprint can offer Globo a significant advantage in human resources, skillset and cost base.
Having delivered strong results for 2013, and with current trading strong and organic growth underpinning our expansion, we are confident and excited about our future success."