Daily News: November 5, 2013

Blackstone Credit Division Acquires Mobile Marketing Business

Velti plc announced it agreed to sell its U.S., UK and India mobile marketing businesses and certain of its U.S.-based advertising businesses to affiliates of GSO Capital Partners, the credit division of Blackstone.
The current proposed transaction includes the sale of business lines operated by Velti Inc. and Air2Web Inc. in the U.S., Air2Web India, and Velti DR Limited and Mobile Interactive Group, Ltd. in the U.K.

“We look forward to working with the company to execute on the growth potential of the mobile marketing industry,” said Scott Eisenberg, of GSO Capital Partners. “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.”

“We are pleased to have reached an agreement with GSO, a firm with substantial financial resources that understands the value of Velti’s state-of-the-art technology, industry-leading solutions, and global presence,” said Velti CEO Alex Moukas. “Both this sale agreement and GSO’s recent acquisition of our secured debt demonstrate GSO’s commitment to providing the business with the support necessary to grow and prosper.”

Additionally, GSO has committed to provide up to $25 million in debtor-in-possession financing, including a $10 million cash injection to support the operations included in the proposed sale.

The filing does not include any of the company’s operations in the UK, Greece, India, China, Brazil, Russia, the United Arab Emirates, or any other jurisdictions outside the U.S. These entities, along with the mobile marketing businesses in the U.S., U.K., and India, are continuing normal business operations.

All operations included in the proposed sale agreement will continue as normal throughout the sale process. The proposed sale is expected to close by the end of 2013.