Spare Backup, Inc. (OTC:SPBU) today announced that it has entered into an agreement to acquire the mobile services platform of Tarsin Ltd, based in London. Under the terms of the letter of intent, Spare Backup will pay approximately $2.5 million in common stock to Tarsin to acquire their platform and subscriber base currently generating recurring revenue of $2.5 million annually. As I write, shares of Spare Backup were down 1 cent at $0.08 per share on light volume of only 10,000 shares. The company has a market cap of $15 million.Spare Backup is also acquiring license rights to Tarsin’s proprietary publishing platform which allows for a single application to be deployed and run on multiple devices regardless of limiting factors such as operating systems, screen resolutions, development languages, and distribution methods. The agreement is subject to completion of agreed upon due diligence and is anticipated to close within 90 days.
Tarsin's international mobile services platform has been the foundation of technology for a multitude of mobile services. The platform has support in over 100 countries world wide, and on deck partnerships with Motorola, BestBuy\CarPhoneWarehouse, Nextel and Media Exchange Group. In addition, Spare Backup will assume Tarsin’s multi- million mobile feature phone backup subscriber base. The acquisition increases Spare Backup’s reach from “smart phones” to “feature phones,” opening large global markets where prepaid phones are commonly used. Also, the subscriber base provides a cross marketing launch point for Spare Backup’s suite of mobile security services when these customers upgrade to smart phone technology. Tarsin intends to focus its efforts on its worldwide publishing technologies and will provide Spare Backup licensing rights to that technology.
“We are pleased to have reached his agreement with Spare Backup and provide them the ability to support thousands of mobile handset types to help add to their stronghold in the Globally Mobile marketplace. In addition, we intend to work closely with them in the future to take advantage of synergies with our publishing tools to forge new potential opportunities together," says John Osborne, CEO of Tarsin.
Commenting on the agreement, Cery Perle, CEO of Spare Backup, stated, "We are excited to team up with Tarsin and take a major step forward in our penetration of the global market for mobile data backup. Their customer base of “feature phone” users provides us with a unique opportunity for future growth. We are extremely excited to have a complete “end to end” solution; taking the customer from their “feature phone” to their new “smart phone.” This platform provides a profitable revenue stream coupled with relationships with major handset makers and distributors that enable us to accelerate our market penetration in the mobile carrier space. Additionally, their publishing technology could represent a breakthrough in how mobile software is published and we are excited to work with them on this revolutionary technology.”
For more information, please visit www.sparebackup.com.
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