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WirelessDevNet.com Press Release
Sovereign Wealth Corp. Signs Letter Of Intent to Acquire Mobile Marketing Company
Newport Beach, CA - Sovereign Wealth Corp. (OTC:SOVW) announced today that it has signed a letter of intent to acquire all of the outstanding shares of Multimedia Solutions, a South African based mobile marketing company, in a cash and stock transaction. The agreement enables Multimedia Solutions to expand its operations internationally to the high growth Asian and American markets.
Multimedia Solutions is a leading supplier of mobile technology in the South African market. It began by offering MMS (Multimedia Messaging Services) campaigns on behalf of network operators like Vodacom (jointly owned by Vodafone) and expanded its offering to other large corporations in South Africa.
The company partners with its clients, assisting them in creating MMS campaigns which are used either internally (communicating a message to employees), or externally (in the form of advertising, a call to action or an educational message).
Multimedia Solutions then developed a range of other solutions including a platform to manage SMS and MMS campaigns, MMS boards at events, mobile website (mobisite) development, a mobile business intelligence solution, a mobile ticketing solution, branded gaming and a detailed reporting engine. The company also provides clients with consulting services, thereby assisting them to integrate mobile marketing campaigns with traditional advertising strategies.
Multimedia Solutions offers clients a turnkey solution which strategically manages the client’s mobile marketing needs from the creation of content for MMS campaigns and mobisites, right through to the execution of campaigns and results analytics.
Multimedia Solutions clients include the network operators, a number of financial institutions and some of the leading retailers and brand owners in South Africa. The pending acquisition enables Multimedia Solutions to leverage the existing platforms and clients which Sovereign Wealth Corp. has in various geographical locations.
The Multimedia Solutions technology also enhances Sovereign Wealth’s Digital Vouchers platform being used to launch its mobile phone and Internet platform in the United States.
“We are pleased to welcome the Multimedia Solutions team to the Sovereign Wealth family and we look forward to growing the business together. Multimedia Solutions provides a strategic fit for us in the mobile marketing value chain,” said Michael Levinsohn, CEO of Sovereign Wealth Corp.
According to Eddie Groenewald, Multimedia Solutions CEO, South Africa has proven to be a market leader globally in mobile technology because of the lack of PC and landline penetration into the South African market. “Mobile phones are the dominant form of communication device in South Africa. Multimedia Solutions has partnered with a wide range of corporate clients in South Africa to assist them in reaching their customer bases through mobile phones. The acquisition by Sovereign Wealth Corp. gives the company the added reach to begin expanding into international markets,” he says.
Sovereign Wealth Corp. will issue stock and make certain cash payments for a total value of approximately $29.6 million, subject to the achievement of pre-agreed profit warranties. Sovereign Wealth intends moving its listing to one of the major American exchanges after the completion of a $5 million private placement. The management of Sovereign Wealth are subscribing for $1 million of the private placement in their personal capacities.
About Sovereign Wealth Corp.
Sovereign Wealth has identified high growth investment opportunities in the mobile marketing area and provides management support and funding to the businesses which it acquires in order to leverage the products and services of these businesses through cross selling opportunities. By identifying key components of the value chain in the mobile marketing sector, Sovereign Wealth is building a portfolio of investments covering SMS and MMS services, mobile content, mobile technology, payment solutions and related electronic distribution platforms. Sovereign Wealth will also look to license technology from international companies who have established a proven business model for mobile products and services.
The market for so called 3G mobile phone products and services is expected to remain buoyant for the foreseeable future. Revenue from voice traffic is flat in many countries and Average Revenue Per User has declined significantly as penetration levels reach saturation point. It is anticipated that the majority of traffic on mobile phone networks will soon be data as opposed to voice and mobile phone networks are investing in high speed services in order to capture market share. Sovereign Wealth intends building a capital base through which it can fund investments in companies which can partner with the mobile phone networks and brand owners in order to leverage the market for these 3G products and services.
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