Pittsburgh-headquartered Smith Micro Software Inc. has acquired the operator business of Circle Media Labs Inc. for approximately $13.5 million in cash. With the transaction, Smith Micro has acquired certain assets, including customer contracts and a perpetual source code license to Circle’s parental control software. This newly acquired technology should further enhance Smith Micro’s SafePath® Connected Life Platform.
In addition, with this acquisition, Smith Micro added two key customers, T-Mobile USA and Sky, to the list of operators it serves. The operator business is expected to report 2019 revenue of $4 million.
The acquisition expands the Smith Micro portfolio and will enhance the overall capabilities of the SafePath platform. The combined solutions will further bolster SafePath’s digital parenting value proposition with applications to optimize parental controls inside and outside of the home.
“The transaction is a win for both companies as it will enable Smith Micro to continue our accelerated growth through the mobile operator space, while allowing Circle to focus their strategic efforts on the direct-to-consumer market,” Smith Micro President and CEO William W. Smith Jr. said, in a statement.
Circle has offices in Portland and Cypress, California.
Riley FBR, Inc. served as financial adviser, and Buchanan Ingersoll & Rooney PC served as counsel to Smith Micro.