MILAN, Italy—Content aggregator Buongiorno USA Inc. is looking to expand its presence in North America with plans to spend as much as $27 million to acquire application developer Rocket Mobile.
The subsidiary of Buongiorno SpA Group agreed to a $17 million buyout of the Los Gatos, Calif.-based Rocket Mobile; up to $10 million more may be paid based on the developer’s performance over the next year. The deal is slated to close early next month.
Rocket Mobile has gained traction with pre-loaded messaging applications and downloadable BREW-based offerings. Wayne Yurtin, who founded the company five years ago, will continue to oversee the operation.
“The cutting-edge applications and services developed by Rocket Mobile have a broad technical reach that add value to the entire wireless value chain,” said Andrea Casalini, chief executive officer of Buongiorno SpA. “Moreover, thanks to relations developed by Rocket Mobile, Buongiorno will be able to strengthen its relationships with U.S. wireless operators, thus accelerating the B2B distribution channel.”
Indeed, Buongiorno has made impressive strides in the United States despite a winnowing market for content aggregators. The company, which formerly operated the DirtyHippo.com storefront before rebranding it as Blinko, reported $21 million in U.S. revenues in the latest quarter, up nearly fivefold from the $4.4 million during the year-ago period.
Buongiorno also reported strong growth in South America and central and northern Europe. The firm reported worldwide revenues of $62 million during the quarter and a net quarterly income of $4.4 million. The company posted an income of $1.2 million during the same period in 2005.
