Mobile payment co. Boku acquires Danal for up to $68M to add in user authentication

TechCrunch | 12/6/2018 | Staff
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After going public in the UK last year, Boku has made an acquisition to expand its carrier billing services, which let users bill mobile content purchases from companies like Apple, Microsoft, Spotify, and 152 other app and other content purveyors to their mobile bills. Today, Boku announced the acquisition of Danal, Inc, a specialist in mobile identity and authentication services, so that it can offer more sophisticated transaction services and also to move into new areas.

Boku will pay up to $68 million for Danal, the company said. Specifically, the financial terms are described by Boku as a “reverse triangular merger” and include 26.7 million Boku common shares of $0.0001 each (“Common Shares”), $3 million of Boku warrants exercisable at 141p each and $1 million in cash, along with a deferred consideration of up to $64 million, “satisfied in Common Shares and warrants, dependent on Danal’s future performance,” which Boku also described as “challenging performance targets for Danal, thereby allowing both parties to share the benefits of efficiencies and growth.”

Danal - Boku - Part - US - Subsidiary

Danal, Boku said, will become a part of a US subsidiary of Boku.

The market is not particularly excited by the deal it seems: the company’s stock has dropped by more than 23 percent in trading today. Boku currently has a market cap of around £168 million ($216 million), and it says that total payment volume in the 10 months to October was up 124 percent to $2.8 billion (versus $1.3 billion the year before), and monthly active users were 12.2 million in October, up 83 percent on a year before.

Danal - Transaction - Carrier - Billing - Service

This is not Danal’s first transaction with a carrier billing service. In 2016, it sold a portion of its business, BilltoMobile, to Bango for $3.5 million.

Boku is buying the rest of the business left behind, with a view to building a bridge between...
(Excerpt) Read more at: TechCrunch
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