JERSEY CITY, N.J., July 9, 2015 (GLOBE NEWSWIRE) -- SITO Mobile, Ltd. (OTCQB:SITO), a leading mobile engagement platform provider, announced today that it has acquired the mobile advertising business from Hipcricket Inc. The seller will receive 6,205,602 shares of SITO Mobile common stock valued at $2.4 million and $1.3 million in cash for a total purchase price of $3.7 million.
The purchase enables SITO to tap new revenue streams for its mobile advertising business through Hipcricket's existing customer relationships with both advertisers and brands. The acquisition will also immediately expand and enhance SITO Mobile's product offerings using proven technology from Hipcricket's adServe platform through which Hipcricket generated nearly $30 million in revenue over the past 30 months.
"This transaction marks the successful culmination of a process we began over a year ago," said SITO Mobile CEO Jerry Hug. "It now provides us with our most coveted asset within Hipcricket, and represents a major growth catalyst for SITO Mobile in many ways. First, we add a great team of experienced mobile advertising professionals that will enable a smooth transition and continued growth within the mobile advertising industry. Second, due to Hipcricket's expansive network, we are stepping into many great new relationships with marquee advertising clients. Additionally, we now have the ability to integrate the best features of Hipcricket's technology, one that will help us continue to improve and enhance the breadth and performance of SITO Mobile's proprietary Location Based advertising platform. Lastly, we believe that the balance sheet improvements made this fiscal year, including this transaction, have advanced the Company toward executing on the plan to list our shares on a national exchange."
About SITO Mobile Ltd.
SITO Mobile provides a mobile engagement platform that enables brands to increase awareness, loyalty and ultimately sales. For more information visit www.sitomobile.com.
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