In a transaction valued at $41 million, the acquisition will cement Boku’s positioning as a leading mobile payment and mobile identity solutions company. Fortumo, which primarily focuses on providing mobile payment solutions to some 400 small-to-medium sized enterprises, also services larger merchants including Google, Amazon and Tencent.
The move could potentially see some of the world’s biggest ecommerce brands offer DCB around the world.
The acquisition is a significant step in Boku’s global DCB growth strategy, bringing together the two most profitable platforms in the DCB market with complementary customer bases, geographic spread and technology platforms and consolidating Boku’s position as the global leader in the DCB market.
Boku primarily serves large digital merchants and Fortumo primarily serves SMEs with higher margins, so there is limited customer overlap. The Acquisition is also expected to deliver operational efficiencies for Boku through access to Fortumo’s lower operational cost base in Estonia and use of Fortumo’s direct connections in many Asian markets to complement the existing Boku network.
Jon Prideaux, Boku’s CEO, comments: “Boku has always grown by a mixture of organic growth and selective acquisition. This deal, which will be our sixth, cements our position as the scale player in Direct Carrier Billing. It brings together the two most profitable players in the industry, with compatible technology, complementary customers and with a great cultural fit.”
Martin Koppell, Fortumo’s CEO, adds: “Joining the Boku group of companies is a great next step for the Fortumo team, which has built up a world-class, business critical technology platform used by some of the world’s leading digital merchants. With a joint strategy, we will be able to better help merchants grow their presence across the world. This also represents a fundamental shift in the Direct Carrier Billing market as the reach, complexity, quality and time-to-market for the solutions we build together will be unmatched.”