Aiming for a broader suite of mobile solutions and global reach, mobile marketing companies Lenco Mobile and iLoop Mobile have entered into a merger agreement. Lenco is known for its rich media deployments for brands and carriers. It offers products in the MMS messaging space, site building, mobile greeting cards and loyalty programs. Most significantly, the company has a worldwide footprint with operations in South Africa, Singapore and Mexico.
Lenco is headquartered in the U.S. iLoop, a longtime mobile marketing provider in the U.S., has strengths in mobile messaging, CRM, couponing and site building. The two companies combined help flesh out their mobile suites across riche media and messaging, as well as extend both companies globally.
In a deal valued at $42 million in cash and securities, iLoop will become a subsidiary of Lenco, a publicly traded company.
Lenco boasts that its solutions offer products that are customized to specific devices, and it has deep relationships with carriers worldwide. While focused in the U.S., iLoop says it has many customers who work globally and need mobile solutions that can work internationally.
“Although applications and mobile Web sites offer a rich experience, they do not have the reach of messaging,” states iLoop CEO Matt Harris. “During the last few months, we have taken Lenco’s MMS messaging solutions to a number of our clients to show them how we can now deliver rich media messaging at scale and at highly competitive prices.”
The companies expect the merged firm to realize strong growth, particularly from momentum in the South African market, in addition to iLoop’s U.S. business and their expanded abilities to capture new business with Lenco’s capabilities.