Augme Technologies has signed a definitive asset purchase agreement to acquire JagTag, a privately held mobile marketing company, for $5.25 million.
Augme intends to create a "premier mobile marketing provider" for brands, agencies, pharmaceutical/health, and media companies. "JagTag has an excellent management team and a great technology suite which complements the Ad Life platform," says David Apple, chief marketing officer at Augme Technologies. "In addition, JagTag brings key patents which will add to Augme's extensive patent suite."
When the acquisition takes effect, JagTag CEO Edward Jordan will become the chief financial officer of Augme. "Jordan will represent a great addition to the executive management team that we've been building over the past year," said Paul Arena, in a statement. "He joins Augme at a time when we believe we are becoming recognized as a technology leader in the U.S. mobile marketing space. Ed's expertise in managing fast-growing technology companies in the mobile and Internet services sectors, combined with his public company experience and his accounting background, should prove invaluable to Augme and its shareholders as we pursue an aggressive growth strategy in the coming years."
"We expect JagTag to contribute value-added synergies that will bolster Augme's ability to provide client brands, agencies, and partners with a full suite of products, services, strategies, and experience to create mobile marketing solutions with measured benefits," added Jordan in a statement. "Our combined offerings are complementary, and we are excited about the benefits we expect our clients will realize from a technology platform that offers significant competitive advantages from a growing intellectual property portfolio."
Apple says all customers should view the Augme Technologies acquisition as an "extensive positive."
According to Apple, JagTag will provide "substantial efficiencies" for companies and brands interested in executing mobile marketing solutions. "Companies realize executing mobile is a necessity, although the market is crowded with one-off solutions which do not provide any level of granule learnings or scalability," he explains. "Consolidating technologies into one solution, and a solution which can be custom-fit to meet the needs of internal CMS and CRM systems is a huge plus."
Although Augme Technologies could not disclose the exact length of the acquisition process with JagTag, Apple says the deal should be complete in about a month.