Southeast Asia's largest telecom company SingTel is set to acquire US-based mobile ad firm Amobee for SG$400 million.
The acquisition, according to SingTel will "complement its existing advanced geo-localisation capabilities to help marketers better target its 400 million mobile subscribers in the region."
SingTel will partner Amobee to create an independent entity that will serve operators, publishers, advertisers and agencies with mobile advertising technology and services. Headquartered in Silicon Valley, Amobee's management team will remain in active control of the company
Allen Lew, CEO of its newly-formed Group Digital L!fe, said: "The mobile advertising market is nascent and has significant potential for mobile operators, who are able to provide differentiated solutions across smartphones and feature phones, giving brands a better return on their marketing spend."
The transaction is subject to certain regulatory requirements and is expected to complete before June 2012.
Meanwhile SingTel has also unveiled a new organisational structure from April 1 comprising three groups - consumer, digital services and information and communications technology.
With the aim of reinventing SingTel's core carriage business, creating and driving new growth platforms and beefing up its regional capabilities in ICT services, the three units will take effect on 1 April 2012.
Group Consumer division will be led by Paul O'Sullivan, will consolidate all consumer-related functions and includes the Group's international business in the emerging markets, allowing it to fully leverage the scale of its more than 400 million mobile customers.
Group Digital L!fe, headed by Allen Lew, will lead SingTel's will complement the Group's consumer offerings with state-of-the-art digital services through bundles and add-ons. Lew and his team also carry a strong mandate to serve customers and other industry players globally.
Group ICT brings together all enterprise-related business units and will focus on providing ICT solutions to serve the Group's enterprise customers, offering comprehensive IT and telecommunications solutions across multiple geographies. Lew will be the covering CEO as the Group searches internally and externally to fill the position.
Chua Sock Koong (pictured), SingTel Group CEO, said: "We now see some of the largest and most exciting opportunities that have ever existed in this industry. The changes are necessary in order to align our people and resources to sharpen our focus and take advantage of these opportunities."