Motricity has closed its acquisition of the mobile services business unit of InfoSpace for $135 million, the companies announced on Friday. Also as expected, Motricity announced the completion of $185 million in funding in a round led by Advanced Equities, Carl Icahn and New Enterprise Associates. Ryan Wuerch remains as chairman and CEO of Motricity while Steve Elfman, former EVP of InfoSpace's mobile services business unit, has been named president and COO of Motricity.
The acquisition expands Motricity's customer base to include 11 of the top 13 carriers in North America, it said, including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. It now powers 5 of the top 6 carrier "start screens". More in release.
According to an SEC filing that InfoSpace filed on Friday, this sale cuts Infospace's revenues by almost half, with the remaining part being its online search business. For the nine month ending Sept 2007, it had mobile revenues of $87.3 million, out of total company revenues of $188 million.