Saturday, March 18, 2006

MocoNews.net: mobile content news

Motricity & M-Qube in Merger Talks?

Related Topics: VC/M&A — Permalink - [by rafat]
I have been hearing these rumors for the last couple of weeks, but am getting mixed messages from my sources on whether it will happen. Motricity and M-Qube, both in the mobile content infrastructure market (and competing against the likes of mBlox, Mobile365, Qpass and Verisign) are in talks to merge, then the play from what I have heard will be an IPO late this year.
Motricity might be the lead party in this, and might acquire M-Qube for between $350million-$400 million and if it goes IPO, it might be under its banner, says a story in Boston Business Journal today (not online). NEA, one of the Motricity investors, is said to be chipping in with $270 million to fund this acquisition, and rest will be in Motricity stock.
Both companies have raised large chunks of venture money over their lifespan. M-Qube has about 200 employees while Motricity has about 350, with around $80 million in financing till now.

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