JINNY SOFTWARE ACQUIRED FOR US$14 MILLION CASH BY THE ACOTEL GROUP
Acquisition of leading Irish wireless solution provider expands EMEA customer base for international MultiMedia ASP Group Dublin, 5th February 2001: Roy Zakka, CEO and Founder of Jinny Software, and Claudio Carnevale, President and CEO of the Acotel Group (ACO.MI), today signed an agreement for the 100% acquisition of Jinny Software in a US$14 million cash deal. The Acotel Group, the leading Italian MultiMedia Application Service Provider, takes an immediate 51% stake in Jinny Software. Through this acquisition Jinny Software will become the key infrastructure partner to the Acotel Group, opening up a potential of 35 million subscribers worldwide.
In addition to the acquisition, the Acotel Group has placed an order with Jinny Software for the immediate delivery of an SMSC (Short Messaging Service Centre), over which Acotel will run its SMS applications, for an additional US$1 million.
The acquisition is mutually beneficial to both companies allowing them to expand their respective customer bases. Jinny has a strong, existing client base in Europe and the Middle East whereas Acotel has extensive presence in its native Italy, the Mediterranean countries and in Latin America. Jinnys customers include Eircell (who have 1.2 million subscribers or 60% of the Irish market and who have recently been acquired by Vodafone) and the Middle Eastern operators Batelco in Bahrain, France Telecom Mobile Lebanon and FastLink, Jordan.
The acquisition enables Jinny Software to continue its focus on the infrastructure platforms for the 3G multimedia messaging, the licences for which network operators worldwide have invested heavily. The product range includes SMSC, Messaging Gateway, WAP Gateway, Streaming Email Engine and, its latest addition, the VoiceXML Gateway to be launched at 3GSM World Congress in Cannes later this month.
We are very pleased with this acquisition - declared Claudio Carnevale, President and CEO of Acotel - Jinny Software develops leading products for the wireless internet. Jinnys expertise will strengthen Acotel as a multimedia service provider.
I am delighted with this deal, added Roy Zakka, CEO of Jinny Software. Acotel provides services and Jinny Software provides a range of infrastructure products. Together our two companies will offer a comprehensive product and service set to the world market.
In financial terms, the operation sees Acotel International S.A. (fully controlled by Acotel Group SpA) underwriting a US$3 million increase in the share capital of Jinny, in addition to acquiring all the shares held by the companys current shareholders. These holdings will be purchased through the payment of US$2 million, plus the simultaneous issue of a two-year debenture loan by Acotel International of US$9 million underwritten by an International Bank. Jinny Software will continue to trade under the Jinny name.
Acotel currently have over 1.5 million active, paying subscribers worldwide. They have an exclusive contract to develop and host applications for TIM (Telecom Italia Mobile) in the Italian market and also have contracts with them worldwide in Brazil, Chile, Spain and Greece. In total the group has access to a market of 35 million subscribers and has now significantly strengthened its position in Europe and the Middle East.
About Jinny Software Ltd
Jinny Software is a leading Mobile Internet solutions provider. The company offers platforms which deliver Multimedia Messaging and Internet applications to the personal, wireless world of mobile devices. Based on open standards, the Jinny product range is designed for SMS, WAP, GPRS and future generation wireless networks. Jinnys growing customer base includes mobile operators and financial services institutions worldwide. The company was established in June 1999 and stems from 27 years combined experience in wireless communications. Jinny Software operates internationally from its Dublin Headquarters and its Middle East Head Office in Dubai. www.jinny.ie
About the Acotel Group SpA
The Acotel Group is a leading European wireless application service provider (W-ASP) and partners network operators and enterprises to enable them to offer their customers personalized, location-based wireless information services, as well as mobile commerce solutions.
In the new multimedia chain, Acotel is strongly positioned as a content aggregator, packager and service provider in the mobile environment, and is growing services for a genuinely mobile information society.
As of December 2000, Acotel was providing personalised wireless value-added services to more than 1.5 million active paying users through partnership with leading wireless network operators, service providers and major banks and airlines in Europe, Latin America and the Middle East. Acotels current potential customer base is more than 35 million.
The Acotel Group is listed on the Italian Nuovo Mercato and is one of the few wireless internet players that enjoys positive net earnings. http://www.acotel.com/english
For further information, please contact:
Michelle Murphy / Andrea Bigger
Text 100 Ireland
Tel: +353 1 260 0353
Fax: +353 1 260 0365
Mob: +353 86 8537806 / +353 86 8302782
Email: [email protected]
Jinny Software Ltd.
Tel: +353 87 292 3333
Email: [email protected]