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Mandalay Digital CEO Peter Adderton On M&A Activity

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Mandalay Digital CEO Peter Adderton On M&A Activity

Mandalay Digital (NASDAQ: MNDL) builds solutions for wireless carriers to monetize content. In an exclusive interview with Benzinga, CEO Peter Adderton discussed future M&A activity.

“We plan to grow Mandalay Digital through a combination of organic growth and acquisitions, and our pipeline of accretive financial and strategic opportunities remains robust,” stated Adderton. “The company now has the strongest balance sheet since I became CEO in December 2011, allowing us to make acquisitions from a position of strength.”

Related: Mandalay Digital CEO Peter Adderton Discusses Rapidly Growing Businesses

Mandalay reported $4.6 million of cash and short-term investments at the end of the most recent quarter; this is a 184 percent increase from the same quarter a year ago.

Adderton discussed the two areas Mandalay believes M&A activity will be accretive.

“The first is expanding our reach into global carriers," stated Adderton. "This would be similar to our past acquisitions of Logia and MIA, which allowed us to fast track our software and services to give us an integrated carrier billing platform as well as local and global content relationships.”

Logia and MIA were acquired in 2012 and 2013, respectively.

“The second, which has really been developing over the past six months, is the CPI (Cost per Install) model for carriers." Adderton continued, "Mobile ad platforms that address this growing area is something that is really starting to take shape for us. With our growing distribution via our Ignite and IQ products, having a mobile ad platform would enhance our strength in dealing directly with brands and ad developers, while also complementing our existing technologies.”

Earlier this year, Mandalay sold almost 4.9 million shares of stock at $4.10, which the company said it would use for, “general corporate purposes, including working capital, operations and potential acquisitions.”

Shares of Mandalay are up less than one percent to $3.63 after falling sharply last week.

This is the second in a series of articles on Mandalay Digital.

Posted-In: Peter AddertonTrading Ideas Interview Best of Benzinga

 

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