Mobile technology firm Zamano targeting higher-value acquisitions

Zamano — the Dublin-based mobile technology firm — is eyeing higher-end acquisitions as it seeks to reposition itself for future growth.

The company — which has, traditionally, provided messaging, advertising and payments support tools to mobile communications providers — has also begun the process of finding a new chief executive following the departure of Ross Conlon, who last month took up the newly-created role of managing director of new business ventures at Independent News and Media (INM).

Zamano came close to being acquired, itself, last year before an indicative offer eventually came to nothing.

Earlier this summer the company launched a strategic review, which advised a gradual repositioning of the business into “higher value-added, growth-orientated activities”.

This move, the review stated, “can be most effectively achieved by implementing a focused bolt-on acquisition programme in the mobile advertising, social and billing areas.”

The review — which was carried out by IT consultancy OFS — also identified “a small number” of potential acquisitions in these three sectors. In its latest trading update, Zamano yesterday said it is “currently evaluating” these prospects.

Regarding trading performance, Zamano said the strong sales growth seen last year and driven by its UK business continued into the first half of this year. However, it added overall group contribution margins were lower as a result of increased advertising spend and the changing profile of the UK business.

While the search for Mr Conlon’s successor is underway and ongoing, Zamano yesterday announced the appointment of technology entrepreneur Eddie Murphy — founder of Irish payments firm Continuum Commerce and director of US social media company SoHalo — to its board in a non-executive capacity.

His role will be to advise and help implement the findings of the strategic review in the coming months.