<http://www.dealcurry.com/2010105-OnMobile-Global-Acquires-Dilithium-Networks-3G-Video-Technology.htm>

Value added services firm, *OnMobile Global* *Limited* has acquired the
rights to video technology and mobile solutions for 3G services developed by
US-based Dilithium Networks Inc.

The acquisition will give OnMobile much needed video capability, given the
future launch of 3G services in India. The acquisition also provides
OnMobile with Dilithium's extensive patent portfolio - over 175 patents in
the world's most advanced video technologies.

Dilithium's technology enables the delivery of novel 3G VAS by offering
superior quality and scale to the creation, adaptation and distribution of
all types of multimedia assets.

 Transaction Note

Started in 2001, US-headquartered Dilithium Networks, which is funded by
venture capital funds and corporate investors that include Motorola Ventures
and Deutsche Bank, is a technology infrastructure company for delivering
video on optimized for mobiles.

Its mobile video solutions enable delivery of multimedia services over
mobile and broadband networks to devices such as mobile phones, smart phones
and set-top boxes.

In India, it had shut down its R&D and sales center in Noida and has laid
off at least 75 workers there. Apart from India, Dilithium had offices in
Singapore and UK and sales offices in China, France, Italy, Portugal and
Dubai.

Dilithium has been undergoing restructuring due to delayed payments and
cashflow issues. It ran into trouble when there were delays in deploying its
video technology in wireless networks overseas. According to
PressDemocrat.com, Dilithium was seeking a new business model, and is
selling assets and closing global offices.

Its clients list BSNL, Yahoo, China Mobile, Chungwa Telecom (Taiwan), D2see
(UK), Echovox Group (France), Vodafone (6 operations), VTM (Belgium), HTC,
TechFaith, Spreadtrum, Datang and Qualcomm.

OnMobile has global deals with Vodafone and Telefonica, and Dilithium’s
video technology would be a good fit for the company that has otherwise
mostly been about CRBT.

This would be the second technology acquisition for OnMobile. Its first in
technology was the voice recognition software company *TelismaSA* of France
in 2008 for Rs.84.4 Cr.

In the past, OnMobile’s had also acquired *VoxMobili*, a French data
products company, for Rs.140 Cr in 2007 and *ITFinity*, another mobile data
company
On a consolidated basis, OnMobile Global reported 15.4% increase in total
revenues to Rs.123 Cr for Q1 FY 2011, compared to Rs.102 Cr during Q1 last
year. It reported 105.8% increase in consolidated net profit at Rs.17.84 Cr
for Q1 FY 2011, compared with Rs. 8.67 Cr during the corresponding quarter
last year.

-- 
Regards

Hardik Shah

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