Digital entertainment company Zamano Plc has conditionally agreed to acquire the Dublin-based Red Circle Technologies Limited for €24.4 million.
Red Circle a leading provider of digital entertainment to mobile devices has over 500,000 active subscribers in Ireland, Australia, UK and USA.
Red Circle generated revenues of €31.1 million in the year ended 31 May 2007, delivering EBITDA of €3.5 million and profit after tax of €3.3 million.
The Acquisition will expand Zamano's suite of mobile brands serving a range of demographics in four separate geographic markets, and treble the active subscriber base.
The maximum total consideration payable of €24.4 million consists of two elements: €17.2 million payable at completion and up to €7.2 million additional consideration based on Red Circle's EBITDA for the three months ending on 31 December 2007.
If the maximum additional consideration of €7.2 million is paid, Red Circle will have generated EBITDA of at least €3.9 million in the year ending 31 December 2007.
The initial consideration and the additional consideration will be split 75 per cent cash and 25 per cent in Zamano shares.
Managing Director of Zamano, John O'Shea said: "This is a transformational deal for zamano and brings together two successful mobile technology companies, creating an enlarged company which will operate on a global level".
Red Circle is zamano's fifth acquisition overall and the second in 2007.