SOURCE: CommerceTel Corp.
SAN DIEGO, CA--(Marketwire - Jun 13, 2011) - CommerceTel Corporation (OTCBB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, announced today that it entered into an agreement to acquire BoomText from DigiMark, LLC. If completed, the transaction would mark CommerceTel's third acquisition of the year.
The Company also announced that it projects revenues of approximately $500,000 for the second quarter of 2011 representing more than 250% growth over the first quarter of the year. The growth is being driven by the Mobivity and Txtstation acquisitions completed early in the quarter. The Company plans to announce full results for the quarter on August 15th, 2011.
"We are pleased to announce our third acquisition of the year and further execution of our stated strategy of building a Mobile Marketing Leader through selective acquisitions. BoomText has done an amazing job building a world class mobile marketing company and their rapid customer acquisition growth is testament to that," said Dennis Becker, CEO. "CommerceTel's technology and product portfolio will drive more value across BoomText's large client base making this a great combination of great products and people."
BoomText has pioneered the sale of mobile marketing solutions and services to the SMB market. By tapping a largely underserved segment of the market, it has grown its customer base to over 1,000 clients, including larger distributed brand organizations such as Sonic, Jamba Juice, Dutch Brothers, Dairy Queen, and Chick-fil-A.
"Combining our business with CommerceTel is an exciting opportunity for both the growth of our company and our service to our clients," said Spencer Brannan, CEO of BoomText. "Our industry is seeing explosive growth and this transaction puts us in front of the curve. We're very pleased to be a part of CommerceTel's consolidation strategy and expect immediate synergies."
Becker commented: "The addition of BoomText and their team will be a huge asset to our growth model and we look forward to continued success in executing our ambitious growth plan."
Completion of the transaction is subject to numerous conditions, including CommerceTel's completion of at least $500,000 in additional equity or convertible debt financing and approval of its Board of Directors. The transaction is expected to close by July 1. The terms of the transaction are more fully described by CommerceTel in a report on Form 8-K previously filed with the United States Securities and Exchange Commission.
For more information, please visit http://www.commercetel.com
CommerceTel is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers via multiple channels. The only system of its kind, C4 is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements including words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the impact of intense competition, the continuation or worsening of current economic conditions and the condition of the domestic and global credit and capital markets as well as the Risk Factors disclosed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 27, 2010. Further information on CommerceTel's risk factors is contained in its filings with the Securities and Exchange Commission. CommerceTel does not undertake any duty nor does it intend to update the results of these forward-looking statements.