South African based mobile marketing company Multimedia Solutions has been purchased by Sovereign Wealth Corp., in a move that will allow the company to expand its operations internationally and reach high growth markets such as Brazil, India, and Asia.
Multimedia Solutions originally provided MMS (Multimedia Messaging Services) campaigns on behalf of network operators like Vodacom (jointly owned by Vodafone) then expanded its offering to other large corporations in South Africa, developing a range of other solutions including a platform to manage SMS and MMS campaigns, MMS boards at events, mobile websites (mobisites), a mobile business intelligence solution, a mobile ticketing solution, branded gaming and a detailed reporting engine. The company also provides clients with consulting services aimed towards integrating mobile marketing campaigns with traditional advertising strategies.
South Africa has proven to be a global market leader in mobile technology because of the lack of PC and landline penetration into the South African market. Eddie Groenewald, Multimedia Solutions CEO, notes that "mobile phones are the dominant form of communication device in South Africa. Multimedia Solutions has partnered with a wide range of corporate clients in South Africa to assist them in reaching their customer bases through mobile phones. The acquisition by Sovereign Wealth Corp. gives the company the added reach to begin expanding into international markets".
Multimedia Solutions specialises in MMS campaigns for use either internally (communicating a message to employees), or externally (in the form of advertising, a call to action or an educational message). MMS messaging is one of the fastest growing sectors of mobile marketing worldwide, with Mobile Data Revenues up 53% year on year to $23 billion in 2007, according to eMarketer.
Sovereign Wealth Corp. is paying cash for the South African operations; the transaction includes profit warranties of $4 million over a defined period.