In InMobi, which happens to be the second largest mobile ad network company after Googles AdMob, has acquired US-based Sprout, which creates rich media mobile advertising. The exact deal size and other relevant details have not been announced. However, according to a person with direct knowledge of the transaction, the deal value could be between $20 million and $50 million.
The InMobi founder and CEO, Naveen Tewari, said. This acquisition gives us product and technology capability that allows us to get the leadership positions in most markets. He also indicated that in the next six months, InMobi could announce more acquisitions. From a fund-raising perspective, we are not announcing anything right now. We are always open for conversations, but we are not announcing anything right now, he added.
It was in 2008 that Sprout was launched. Backed by Polaris Venture Partners, the companys list of clients includes the likes of Chevrolet, Disney, Paramount Pictures, HTC, Sega and Nokia. The company has expertise in creating, building and distributing advertisements, based on HTML 5. With the acquisition of Sprout, InMobi will have access to rich media technology for ad creation and distribution on mobiles.
Analysts, who keep watch on the mobile ad market, are of the opinion that InMobis global scale and operations, combined with a best of breed Sprout HTML5 creative production platform, will provide agencies, brands, and publishers with better avenues for advertising on mobile handsets. The creation and distribution of rich media ads for devices that support HTML 5 will become possible.
Based in Bangalore, InMobi continues to expand aggressively across the globe. According to sources, InMobis ad network reaches 314 million consumers in more than 165 countries, and delivers 36 billion mobile ad impressions every month. Sprout will retain its branding and remain an independent company after the acquisition, and the SF-based team of 15 will all be kept on board.
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