Boku Inc to sell Boku Identity to Twilio for $32.3mn

Boku Inc to sell Boku Identity to Twilio for $32.3mn

LONDON, UK: Boku Inc., a leading provider of mobile payment solutions, has reached agreement for the divestment of its wholly-owned subsidiary Boku Identity Inc. to Twilio Inc. for a maximum transaction value of $32.3 million, payable in cash.

Boku Identity provides mobile identity and authentication solutions driven by real-time connections to Mobile Network Operators (MNOs).

Completion of the transaction is expected within 60 days upon satisfaction or waiver of certain customary conditions referred to in the SPA.

Under the terms of the agreement, $26.1 million is payable on completion (subject to customary adjustments and a final determination up to 120 days post completion). The balance of $6.2 million comprises amounts held back to cover indemnities and is payable in two tranches within a maximum of 18 months, subject to the terms and conditions of the SPA.

Boku Identity was acquired in 2019 as Danal Inc. for a total consideration of $25.1 million. The disposal will allow the Identity business to continue to develop and grow under new ownership.

For the financial year ended 31 December 2020 Boku Identity produced audited results of Revenue of $5.2 million, an Adjusted EBITDA loss of $3.9 million and a loss before tax and exceptional items of $5.8 million.

The audited net assets of Boku Identity on 31 December 2020 were $5.4 million. Full year results (unaudited) for the financial year ended 31 December 2021 are expected to show revenues of approximately $7.1 million (up 37%) and an expected, reduced, Adjusted EBITDA loss of $2.9 million.

Commenting on the Disposal, Jon Prideaux, CEO of Boku, said: “Boku has decided to divest its Identity business so that we may focus our resources on our Payments business. In 2021, Boku has grown its payments network to reach 7 billion consumer payment accounts, increased its mobile wallet payments transaction value more than five-fold, as well as launching mobile-first payments for world leading digital advertising, music and video streaming, video and console game companies.

By becoming a pure-play payments business, we seek to capitalise on our momentum and maximise our market opportunity in 2022 and beyond.

“We believe Boku Identity will be able to continue to develop under Twilio’s ownership and we wish the business and its staff well for the future.”

Add a Comment

Your email address will not be published. Required fields are marked *