Boku takeover plans spook investors

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Boku takeover plans spook investors
Master Investor Magazine 44 cover

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AIM-listed mobile payments firm Boku (LON:BOKU) has seen its share price drop by 23.06% to 75.40p (as of 13:40 GMT) after it announced plans to acquire identity and authentication specialist Danal for an initial consideration of 26.7 million newly issued shares, $3 million in Boku warrants, and $1 million in cash. There are also pontential future payments valued at up to $62 million.

CEO John Prideaux commented: “Charging purchases to your phone bill has proved a great way for the world’s largest digital companies to acquire and retain users, but has had fairly limited application outside digital content. This Acquisition allows us to offer services that go further and to improve user quality for our customers while at the same time improving the mobile experience for users. Mobile commerce is booming, yet many tools were developed to support PC-based commerce. Danal has shown that MNO data can also combat fraud, reduce friction in signup and ensure regulatory compliance on mobile. These problems are relevant not just to our existing digital customers but also in other sectors including e-commerce, finance, transportation and government.

“Combining Danal’s customer base and technology with Boku’s international scale and global MNO connection capability, will allow us to build the world leader in this emerging space.

“We look forward to the completion of the Acquisition and integrating Danal into our leading carrier billing offering. Truly we are entering the era of Carrier Commerce.”

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