Tuesday, May 19, 2009

2ergo Zips Up Its Wapfly

According to a story from Mobile Entertainment yesterday Manchester, UK based WAP and SMS platform powerhouse (and Cabana Mobile Entertainment Stock Index component) 2ergo Group Plc. (RGO) has further expanded their global footprint by acquiring Aussie mobile marketing firm Wapfly. This is similar to the way they expanded into the US & LatAm by acquiring US mobile pioneer Proteus back in 2006. Besides the geographical appeal Wapfly comes with some high profile clients (notably giant pubcaster Australian Broadcasting Corporation (ABC), Conde Nast & Motorola) and some capability in developing new platform applications...they recently deployed an ad-supported iPhone App for the ABC which had 50k downloads in 3weeks. No one seems to know what they paid (I'll keep digging).

With this acquisition, 2ergo, which generated ~$50mil in revenue & ~$5mil profit last year, is even better positioned to become a global leader in the deployment of scalable, enterprise grade, turnkey mobile solutions for brands seeking a meaningful mobile presence. Strangely this space is still primarily populated with small shops using either licensed or homegrown glue & duct tape platforms...catering to firms who don't know any better. But as brands get more sophisticated about mobile, as they want to run more innovative global campaigns and manage/monetize their traffic, they will realize the value of more robust platforms and migrate to the quality players in the space like 2ergo.

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