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UK telco New Call buys Nimbuzz for $250m [India Business] [Times of India](Times of India Via Acquire Media NewsEdge) NEW DELHI: UK's New Call Telecom is acquiring India-focused instant messenger and Voice over Internet Protocol (VoIP) player Nimbuzz and the deal is estimated at around $250 million. Nimbuzz, headed by 35-year-old IIT Delhi grad Vikas Saxena, has over 200 million registered users, with biggest share of 20% coming from India. Company officials, while confirming the deal to TOI, refused to comment on the transaction size. Founded in Netherlands by Evert Jaap Lugt in 2006, Nimbuzz claims to have a fast-growing user base with subscribers in over 200 countries and a robust mobile advertising business. Apart from the original promoter, others who have an exposure in the company include Saxena, Mangrove Capital Partners and Naspers. Saxena, who has earlier worked with companies like Bharti Airtel and Aircel, said the deal will help Nimbuzz expand, especially in new technology areas. Sources said New Call Telecom, the sixth-largest internet service provider in the UK, will pick up around 70% stake in Nimbuzz, which currently has a revenue projection of around $15 million annually. Nimbuzz has a little over 100 employees, mostly in India, and some of them are expected to benefit from the deal due to their ESOP holdings. Saxena will continue to hold some of his equity in Nimbuzz post the deal and will remain as CSO. "We see huge potential in India's nascent internet, broadband, instant messaging and data sharing markets. We hope to generate and expand a number of new and traditional revenue streams as e-commerce picks pace and broadband expands," New Call chairman Jerome Booth said. (c) 2014 Bennett, Coleman & Company Limited |