Velti sells mobile marketing businesses to GSO Capital Partners
Mobile marketing and advertising technology provider Velti is to sell its Air2Web India, UK-based Mobile Interactive Group and Velti DR and US-based businesses to GSO Capital Partners, the credit division of Blackstone.
GSO has committed $25 million in debtor-in-possession financing, including a $10 million cash injection to support the operations included in the proposed sale, according to a statement. GSO will also assume $50 million of debt from HSBC. Velti got the revolving credit from HSBC in 2012 by providing substantially all its assets as security.
"The increasingly important need for businesses to have effective and reliable mobile communication with their customers requires a sophisticated and scalable technology. We believe that the Velti platform, including the Air2Web and Mobile Interactive Group acquisitions, is well positioned to grow share in this market," said Scott Eisenberg, principal at GSO Capital Partners.
Velti's US operations, including Velti Inc and Air2Web, have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.All operations included in the proposed sale agreement will continue as normal. The proposed sale is expected to close by the end of 2013.
Velti had $130 million in losses at the end of Q2 2013 compared with a net loss of $17.7 million at the end of Q2 2012. The company has faced difficulties collecting payments in some countries, particularly in Greece and Cyprus, which contributed to a breach of debt covenants.
The company acquired mobile customer relationship management provider Air2Web for $19 million in 2011. The next year it also bought China's CASEE mobile ad exchange and mobile ad network for $8.4 million.
GSO raised $4 billion for its second mezzanine fund in 2012, twice the amount of commitments for its first. GSO Capital Opportunities Fund II has provided financing to Sony for its acquisition of EMI Group's music publishing unit and a unit of Chesapeake Energy.
In September Australian surfwear company Billabong walked away from a refinancing deal with a consortium led by Altamont Capital Partners, which included GSO, to accept Oaktree Capital Management and Centerbridge Partners' plan instead.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.