Bango raises £5m to buy data management business
Cambridge mobile payment technology business Bango is raising £5 million growth capital which will cover the acquisition of a European data management specialist.
CEO Ray Anderson said the acquisition of Audiens, a subsidiary of Digitouch, quoted in Italy, was designed to accelerate Bango’s data monetisation business.
He said the deal was expected to add to group revenue immediately and boost the 2019 profit figure and bring benefits to customers and mobile operator partners.
Anderson (pictured above) and Bango’s chief marketing officer Anil Malhotra each intend to subscribe for up to a total of £20,000 of new shares at a price no less than the placing price.
Bango is paying €1.48m (£1.3m) in cash immediately for Audiens plus €0.63m (£0.55m) to Digitouch for provision of shared services for up to 12 months from the date of the acquisition. The consideration also includes 521,803 Bango ordinary shares which have been issued at the placing price and the grant of 738,399 warrants over Bango ordinary shares exercisable for a period of 10 years at the same price.
The remaining 1.55 per cent of Audiens is retained by Marko Maras, a co-founder of Audiens. Bango has entered into an agreement relating to the Maras shares which involves additional consideration becoming payable as part of a two-year incentive plan to maximise the success of Audiens as part of Bango.
The new shares will start trading on AIM in the UK from January 29.
Anderson said: “The acquisition of Audiens accelerates the development of the Bango data monetisation business and opens the door to exciting new additional revenue streams from the Bango platform.
“Mobile operators are eager to find new ways to improve their monetisation of data - in ways that respect user privacy and comply with regulations. Merchants want to grow sales faster and reach new customers more efficiently. The combined platform will provide customer insights to merchants, advertising partners, and mobile network operators, to drive consumer engagement and revenue.
“The Audiens team has developed a powerful data monetisation product that is gaining rapid customer traction and is being integrated with industry leaders. The technology and relationships that Audiens brings will enable Bango customers to grow faster than originally planned.
“Bango Boost already monetises data by delivering significant sales growth for merchants. With Audiens technology, Bango can now capitalise on the demand for data to enable more effective marketing, bringing additional revenue and scale to Bango, as mobile cements its place at the centre of global commerce.”
Over more than two years, Audiens has developed a cloud based data platform that collects, organises and analyses data, building customised audience segments and making these available to advertisers.
Advertisers can map more accurately to relevant users based on their activities, enabling data-driven decision making. The Audiens team has extensive domain expertise and market experience.
Bango believes that the Audiens technology complements and accelerates the Bango data strategy by 12-18 months, enabling Bango customers and other advertisers to improve marketing effectiveness.