Feature Article

June 04, 2013

OnMobile Acquires Livewire

OnMobile Global Ltd is making quite the purchase with the acquisition of Livewire Mobile. The mobile value-added services provider OnMobile is paying nearly $18 million to purchase LiveWire’s business assets and liabilities, creating the new OnMobile Live Inc.

Currently, Livewire powers ringback tone and mobile music solutions for a variety of providers, such as Sprint and MetroPCS. As such, OnMobile will be able to expand its music and ringtone services in North America, providing the music and infotainment services that Livewire currently offers.

As per the acquisition, OnMobile will not only acquire the provider of managed mobile entertainment solutions for network operators and device manufacturers, but will also purchase stocks of Fonestarz Media Ltd, Livewire’s U.K.-based managed services arm. The total costs come to around $17.8 million, subject to contingent payments.

“The acquisition augments our strong market presence in mobile cloud services that we currently provide to major mobile operators in North America,” says Mouli Raman, CEO and co-founder of OnMobile Global. “By successfully integrating OnMobile and Livewire’s products and by extending OnMobile’s proven managed services model, we believe we can create a truly compelling value proposition for the telecom operators and consumers worldwide.”

This is quite the acquisition for OnMobile. The services that the two companies offer blend quite nicely, so the resulting OnMobile Live Inc. will no doubt benefit from the combined experiences and services from the both of them, helping provide a suite of solutions to improve the value of mobile phones and services.

Still, no actions are without their risks. With all the assets OnMobile is acquiring, it’s also taking on some liabilities from LiveWire. While those are not likely to cause any major setbacks to the company, it’s a chance that all must take when making such large acquisitions.

Risks aside, the combined company looks like it has a bright future ahead. It has customers in place and services to offer; the rest is just a matter of putting them to use.

Edited by Rory J. Thompson

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