Australian listed crowd-sourced news startup Newzulu has just completed its acquisition of Canadian user-generated content marketing software company Filemobile in a deal worth more than $5 million.
Originally struck last October, the acquisition was funded via an $11.5 million capital raising which was completed at a valuation of about $57.5 million last week.
The company said it made the acquisition in a bid to make US expansion smoother. Filemobile’s client list includes USA Today, Fox News, Wall Street Journal, and Hearst TV, iTV, CTV, CBC, The Weather Network and Scientific American and global brands such as Underarmour, Cisco, Allrecipes.com and JC Penney.
Filemobile generated more than $2 million in annual revenue for the 2014 financial year. Under the Share Purchase Agreement, Newzulu agreed to purchase all of the issued and outstanding shares of Filemobile.
Newzulu’s executive chairman Alexander Hartman said he hopes this acquisition will boost the startup’s ability to provide crowd-sourced news to publishers around the world.