Mobile payments company Bango PLC said Monday it is buying BilltoMobile, the U.S.-based carrier billing services of Danal Inc., for up to $3.75 million.
BilltoMobile is majority-owned by Danal. Morgenthaler also owns a stake.
The assets bought by Bango include the BilltoMobile service offerings with associated contracts and intellectual property licenses. Key partners have already agreed to assignment of their contracts from Danal to Bango, the company said.
The annual loss attributed by Danal to the assets being bought is $850,000. However as Bango management expects to operate the BilltoMobile services within the current Bango operational cost base and platform, the acquisition is expected to make a significant contribution to the performance of Bango in 2016 and beyond, it said.
Danal and Bango expect to continue collaborating in the future, with a view to enabling Bango partners to benefit from Danal’s position in mobile identity solutions, Bango said.
First appeared at WSJ