Motopia Limited (ASX:MOT) has purchased Mobiware Pty Ltd, an Australian developed mobile transactions facilitator and card services provider.The terms of the purchase include a funding and business development element by Motopia, issuance of Motopia shares to Mobiware’s vendors upon signing and in relation to an earn-in agreement over three years for performance milestones.Motopia will issue 50 million shares on signing, 50 million shares upon more 80% of a company called Cash Back City being transferred to Mobiware, and 50 million shares provisional on Mobiware's Priority Processing System card program being implemented by 31 March 2014.Performance hurdles that generate the issues of shares include Motopia shares issued in June 2015 at 30 day VWAP based on 4X EBITDA minus $150,000; and June 2016 Motopia shares issued at 30 day VWAP based on 6X EBITDA minus $150,000 and minus the dollar value of the shares issued at Hurdle 1.The Mobiware product set includes:- Beyond Rewards, a loyalty management technology offering merchant funded rewards to “Any Card” program managers which can be white labelled to enhance brand, marketing and transactional programs;- Mobiware LMS, a suite of mobile and internet applications which can also be extended to enhance loyalty programs;- MobiReward, merchant tools featuring merchant-branded apps, mobile coupons and offers, again with loyalty program; and integration;- vGift, a digital gift platform to deliver, store and redeem electronic store gift cards.The services are directed to major corporate clients such as airlines, retailers and telco’s throughlicensing agreements, pre-paid card issuers, card program managers and financial institutions.Motopia anticipates the development of a strong international business through Mobiware, and synergistic growth with Mobiware's Priority Processing Systems.The company is currently capitalised at around $6 million, prior to issuance of new shares as consideration for the acquisition. Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.
