The purchase price of Ivan Braiker's company was $44.5 million which comprised of $3 million in cash, a $1 million promissory note, $2 million to be paid to holders of Hipcricket options, which amount Augme may pay, at its discretion, in either cash or Augme?s common stock and $38.5 million in Augme?s common stock. In addition, the transaction calls for a twelve-month earn-out payment to Hipcricket shareholders and employees valued at up to an additional $27.5 million, which may be paid in cash or Augme?s common stock at Augme?s discretion provided that the transaction remains a tax-free reorganization. Augme expects to retain all of Hipcricket?s employees, and the current Hipcricket team will continue to service Hipcricket?s customers.
Earlier this summer, Hipcricket reached hosted its 130,000th campaign, and the company managed over 30,000 campaigns in 2011 using a broad range of mobile communications platforms, including SMS, MMS, CRM, mobile-social programs, mobile coupons, QR codes, branded applications, mobile web, and other platforms for such clients as Macy?s, MillerCoors, Nestle, KFC, and Clear Channel. Hipcricket?s pace of activity has steadily advanced since the company powered its first campaign in 2004.
Paul Arena remains Chief Executive Officer of Augme, while Hipcricket?s founder and Chief Executive Officer, Ivan Braiker, has been appointed President and joins Augme?s Board of Directors. Jim Crawford has resigned as a director of the Company, however, he remains Augme?s Chief Information Officer. Eric Harber, President and Chief Operating Officer of Hipcricket, joins Augme?s management team as Chief Operating Officer. Phillip Rapp, previously Chief Operating Officer of Augme, has become Executive Vice President of Strategic Planning. Following Augme?s acquisition of JAGTAG last month, the former CEO of that company, Ed Jordan, was named Chief Financial Officer of Augme.
Braiker said ?We expect the combined company to continue to innovate and deliver powerful mobile marketing tools and campaigns to all of its existing customers, including over 50 Fortune 500 and Global 500 companies, and to future customers seeking best-in-class solutions and results.?
