Augme Technologies To Buy Hipcricket
August 5, 2011 at 3:55 AM (PT)
AUGME TECHNOLOGIES has signed a definitive agreement to purchase substantially all the assets and the business of HIPCRICKET, INC., a leading mobile marketing and advertising firm headquartered near SEATTLE.
The acquisition, which is subject to HIPCRICKET shareholder approval, AUGME's investment banker approval and final due diligence, is expected to close at the end of AUGUST 2011.
The purchase price of $44.5 million will be comprised of $6 million in cash and $38.5 million in AUGME common stock. In addition, the transaction calls for a twelve-month earn-out payment valued at up to an additional $27.5 million, which may be paid in cash or stock at AUGME's discretion provided that the transaction remains a tax-free reorganization. Concurrently with the closing of the acquisition, AUGME expects to hire all of HIPCRICKET's employees and the current HIPCRICKET team will continue to service HIPCRICKET's business.