MESSAGE ALERT: INPHOMATCH, MOBILEWAY SIGN MERGER DEAL

Messaging technology vendors InphoMatch and Mobileway have agreed to merge, a response to the late-blooming U.S. messaging market and future prospects for growth in global messaging driven by increasing interoperability.

Both companies have had their share of success in different parts of the message delivery chain, and in different regions of the world. InphoMatch, focused on message delivery and interoperability, is based in Chantilly, Va., and has been heavily focused on the U.S. market.

The U.S., however, is still well behind international messaging markets in its evolution, but it's a giant that has shown recent signs of awakening, according to Neville Street, the CEO of InphoMatch, who will become the president and CEO of the merged company.

Mobileway, meanwhile, focuses on the content and billing end of messaging, maintaining billing agreements and connections with many carriers around the world, and more than 450 well-known global brands, such as Coca-Cola and Nike. The company has lead offices in Paris, London and other international locations.

“Initially, this deal is driven by the globalization of the mobile messaging market,” Street said. “We're stronger in America, and they are stronger in Europe and particularly Asia. The U.S. is the next growth market for messaging, but we're at the point where if a customer in the U.S. sends a message to someone in France, they expect it to get there.”

Neither of the private firms disclosed the financial terms of the merger, but acknowledged that the combined company will be worth about $120 million. Also, both companies separately raised new funding within the past few months, with Mobileway receiving $23 million and InphoMatch gaining $13.5 million.

Mobileway became EBITDA positive for the first time last quarter, and InphoMatch has a seven-quarter streak of net income profitability.

“We have the resources to be a key, long-term partner that both carriers and brands need to capitalize on the globalizing mobile market,” said Vince Tallent, chief financial officer of Mobileway, who will have the same title in the merged company.

Street added that the companies are considering a new name for the combined entity, and they expect to unveil it sometime in September. Most of the executives from both companies will be retained after the merger, though Street said the firms are still evaluating post-merger structure.