Singapore Telecommunications Ltd (SingTel), Southeast Asia’s biggest phone company, will be paying $321 million in cash to buy Amobee Inc. Singtel is making this acquisition in order to expand into the mobile advertising space, since SEA is one of the fastest growing regions in terms of demand and growth of smartphones.In a statement released by SingTel, the company said, “Mobile devices today play an important role in everyday life,”SingTel said in the statement. “We want to capture that growth in developed and emerging markets with this acquisition.” The acquisition will be completed by June this year. And the new products and solutions will be released from SingTel from this acquisition by next year. The statement further adds, “Delivering the next generation relationship marketing tool for brands to give them more scope to deepen their one-on-one engagement with different audiences across different countries.”
In fact SingTel plans to empower its customers to receive only relevant and customised offers and promotions catering to their needs and preferences while protecting their privacy. The company has access to 400 million mobile customers which means that today brands can reach out these many in the emerging markets when they tie up with SingTel to put up mobile campaigns.
This acquisition comes in the wake of SingTel setting up the Innov8 venture fund in 2010. The fund worth $159 million was put in place by Temasek Holdings Pte, SingTel’s largest shareholder. This was to transform the company from just a home and wireless phone service provider to a new communication technology and solution company. However, SingTel plans to retain Amobee’s identity and current team since te company itself has a string branding and customer base. Trevor Healy, CEO, said, “We are delighted to partner SingTel to continue our leadership in mobile advertising. SingTel and Amobee have a shared a vision of the future of mobile marketing and by leveraging each other’s strengths, we will be able to advance the industry on a global scale at a faster pace.”
By acquiring Amobee, a leading mobile advertising services and solutions providers globally, SingTel plans to expand into digital and mobile advertising space. The company is taking a three pronged step to focus on the next generation of consumers.It is realigning its operations throughout Asia. SingTel is creating three different businesses including Consumer, Digital Life services, and ICT (information technology solutions for large business and government customers). The new business structure will take effect on April 1.
The Digital Life business will be handled by current Singapore CEO Allen Lew, while Paul O’Sullivan who currently heads SingTel Optus Australia business will handle the consumer division. Talking about the acquisition, Lew, under whose purview this will be says, “This expansion into the mobile marketing industry is part of our strategy to increase our share of the digital consumer wallet and will allow us to shape the digital ecosystem.”