Boku has announced plans to acquire Fortumo, a direct carrier billing (DCB) competitor, for an enterprise value of $41m. While not large in volume terms, Fortumo’s focus on smaller merchants attracts higher take rates and, combined with its low-cost Estonian operations, results in a highly profitable business. The acquisition is being funded by the recent equity raise (23.6m shares at 85p) and new debt. We estimate that the deal is immediately earnings enhancing, and strengthens Boku&rs
22 Jun 2020
Boku - Consolidating the carrier billing market
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Boku - Consolidating the carrier billing market
BOKU, Inc. (BOKU:LON) | 184 0 0.0% | Mkt Cap: 554.5m
- Published:
22 Jun 2020 -
Author:
Katherine Thompson -
Pages:
7
Boku has announced plans to acquire Fortumo, a direct carrier billing (DCB) competitor, for an enterprise value of $41m. While not large in volume terms, Fortumo’s focus on smaller merchants attracts higher take rates and, combined with its low-cost Estonian operations, results in a highly profitable business. The acquisition is being funded by the recent equity raise (23.6m shares at 85p) and new debt. We estimate that the deal is immediately earnings enhancing, and strengthens Boku&rs