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Velti Announces Intention to Acquire CASEE, China's Largest Mobile Advertising ExchangeProposed Acquisition Follows Velti's 33 Percent Investment in CASEE in 2008; Will Give Velti a Crucial Stronghold in One of the World's Most Important Mobile Markets (May 12, 2011)
BEIJING and SAN FRANCISCO, CA -- (Marketwire) -- 05/12/11 -- Velti (NASDAQ: VELT), a leading global provider of mobile marketing and advertising technology, today announced that it intends to acquire the remaining equity ownership of CASEE, the largest mobile ad exchange and mobile ad network in China.
CASEE was founded in 2006 by CEO Xin Ye and a team of successful technology entrepreneurs. Previously, Mr. Ye was founding CTO of Sohu.com (NASDAQ: SOHU), China's leading web portal, and Censoft, Microsoft's first joint venture in China. Eric Xu, CASEE founding investor and current board member is also a co-founder of Baidu (NASDAQ: BIDU), China's leading search portal. In 2008, Velti acquired 33 percent of CASEE, giving the company the ability to execute campaigns for global brands in China, and forming an important piece of Velti's global expansion strategy.
The proposed acquisition will give Velti a self-service mobile marketplace platform that:
- Connects more than 10,000 mobile content publishers including Sohu and Baidu and over 2,000 iPhone and Android application partners with advertisers ranging from multinational companies such as Kodak, General Motors, Google, MSN, Tencent, Mobile 360, HP, Lenovo, Microsoft and Audi among others, to local, small and medium-sized enterprises;
- Offers both advertisers and publishers the ability to target and personalize advertising in different provinces and cities. CASEE allows advertisers to target by province, city, phone brand, phone model, and user behavior; and
- Provides easy-to-use self-serve web tools with transparent and robust reporting.
"Our plan to acquire the remaining interests in CASEE reflects our commitment to supporting the global needs of our clients," said Alex Moukas, CEO of Velti. "The acquisition also positions us optimally to capitalize on the rapidly expanding mobile marketing and advertising market in China, where there are now more than 850 million mobile subscribers. Online advertising spending in China, which historically has served as a precursor to mobile ad spending, is expected to surpass $5 billion this year, an increase of more than 30 percent over last year according to eMarketer. Combined with our 2010 acquisition of Mobclix, this will significantly enhance our global mobile exchange footprint, which is key to our strategy for continued growth."
"We are confident that joining forces with the world leader in mobile marketing will help accelerate the growth of our publisher and advertiser customer bases by increasing our exposure and attractiveness to global brands," said Xin Ye, CEO of CASEE. "We're particularly excited about the strong synergies between our mobile marketplace capabilities and those of Velti's exchange properties and the combination of mobile advertising and mobile marketing that Velti mGage offers."
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements regarding the benefits of the acquisition of the remaining equity interests in CASEE, the synergies with the mGage Exchange, the expected growth in mobile advertising and marketing in China and the opportunities for further growth. The achievement or success of the matters covered by such forward-looking statements involve risks, uncertainties and assumptions, and if any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company's results could differ materially from the results expressed or implied by the forward-looking statements we make. These risks and uncertainties include -- but are not limited to -- risks associated with our ability to complete the acquisition and achieve the benefits expected of the acquisition of CASEE and of the mGage Exchange, to expand our customer base, keep pace with technological and market developments and remain competitive against potential new entrants into our markets. Further information on these and other factors that could affect the company's results is included in our annual report on Form 20-F and in our registration statement on Form F-1 filed with the Securities and Exchange Commission and in other filings we may make with the Securities and Exchange Commission from time to time.
Velti assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Velti is a leading global provider of mobile marketing and advertising technology and solutions that enable brands, advertising agencies, mobile operators and media to implement highly targeted, interactive and measurable campaigns by communicating with and engaging consumers via their mobile devices. The Velti platform, called Velti mGage, allows customers to use mobile and traditional media to reach targeted consumers, engage the consumer through the mobile Internet and applications, convert them into customers and continue to actively manage the relationship through the mobile channel. Velti has the ability to conduct campaigns in over 30 countries and reach more than 2.5 billion global consumers. Velti is a publicly-held corporation based in Jersey, and trades on the NASDAQ Global Select Market under the symbol VELT. For more information, visit www.velti.com.
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