InphoMatch Inc. and Mobileway will merge to create a new U.S.-based mobile messaging company with more than 200 carrier connections.
While terms of the deal between the two privately held companies were not disclosed, InphoMatch Chief Executive Officer Neville Street described the agreement as “a straight fifty-fifty merger.” The union is expected to generate $100 million in revenue this year.
“As mobile messaging grows in volume and complexity, the industry needs a proven leader who can offer global reach and an outstanding quality of service,” said Street, who will serve as president and CEO of the yet-to-be-named company. “The combination of Mobileway and InphoMatch creates the global footprint our customers and prospects need, as well as carrier-grade connectivity and the ability to extend their brands and content to wireless devices.”
InphoMatch is a Virginia-based company that facilitates the transmission of text messages across wireless carriers; U.K.-based Mobileway delivers information to wireless devices. In September, officials will unveil a name for the new, 200-employee company, which will be based in Chantilly with 13 other offices worldwide.
But while a merger may seem like a natural given the two companies’ service footprints, senior analyst Seamus McAteer of the Zelos Group said he expects the union won’t be completely painless.
“From a technical perspective, the these are two very different synergies,” said McAteer, noting the differences in services the two companies provide. “They’ve been catering to two different constituents. I’m not sure how big a lift either company will get through the association.”
McAteer said InphoMatch has been the subject of ongoing takeover/merger rumors.
“I’m pretty sure there’s going to be a public offering in the offing based on this merger,” he said.
