Motricity expands its NA foothold with $135 million buy
Motricity, a provider of mobile content services, has signed an agreement to acquire the mobile services business unit of InfoSpace Inc. for approximately $135 million cash.
InfoSpace develops mobile technologies and infrastructure services. Its mobile services division provides managed services infrastructure for mobile carriers, including technology and services spanning mobile search, storefronts, portals and messaging services
The deal will expand Motricity's customer base to include 11 of the top 13 carriers in North America, including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel.
The Durham, NC-based company will name Steve Elfman, currently EVP of InfoSpace's mobile services business unit, as president and COO. Ryan Wuerch will remain chairman and CEO of Motricity.
The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close within the next 90 days. Carl Icahn and Advanced Equities Inc. provided significant investments to fund the buy. Savvian LLC is acting as financial advisor, while Kirkland & Ellis LLP and Boult, Cummings, Conners & Berry PLC are acting as legal counsel to Motricity in connection with the transaction.