Technology company Plus SMS today said its trading unit, CRE8, had bought Multiecast Limitada, a provider of interactive content services for mobile phone operators and media companies in South America.
Plus SMS has paid US$500,000 ($740,000) and US$200,000 in working capital to accelerate growth throughout the region;
Itwill pay up to US$2 million over two years if Multiecast achieves a 50 per cent annual revenue growth, earnings before interest and tax of 25 per cent and key management remains with the company during the period.
Through its operations in Santiago, Chile, Multiecast provides content to Movistar Chile, Entel PCS and Claro Chile and delivers interactive TV services to the three largest media companies in Chile.
By combining key assets and capabilities, the two companies aim to create the largest footprint for content services throughout Latin America, Plus SMS said.
CRE8 now has content agreements through much of south and central America.
CRE8 will base its South American operations in Santiago, and soon enter into Brazil and Argentina while continuing to expand throughout Central America from Mexico City.
Plus SMS has had a rough ride on the sharemarket in the last year after admitting it had been economical with the truth in statements made to the exchange.
Last month, it forecast consolidated revenue of $18 million and a break-even profit position for the year to March 2008.
The Stock Exchange threatened last month to suspend Plus SMS for being late with its half year report.
Plus SMS shares last traded at 10 cents. This time a year ago they were on 76 cents.
