iTouch spends €30m on Finnish mobile firm

21 Jul 200440 Views

It has emerged that iTouch has acquired a Finnish mobile entertainment firm for €30m, in the process opening up access to new markets in countries like Sweden, Finland, the Netherlands and Norway.

The deal will also afford iTouch with a springboard into the Russian SMS market, which is understood to be worth around €100m. iTouch is 50pc owned by Independent News & Media.

Under the terms of the deal, iTouch will initially pay €5m in cash and €7m in shares for Finland’s Jippii Mobile Entertainment. It is understood that the remaining consideration will depend on Jippii’s financial performance and will also be paid in shares.

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Jippii is a subsidiary of Saunalahti Group, which has offices in six countries and agreements with mobile operators in 20 countries. The company last month established a pan-European gaming portal that boasts 2.8 mlilion users a month.

Last year, Jippii made a trading profit of €2m on revenues of €18m.

By John Kennedy