Estonia, Financial Services, Good for Business, Internet, Markets and Companies, Mergers and take-overs, Technology

It said the deal represents the biggest transaction in the Estonian tech sector after the sell-off of Skype and GrabCAD. 

Estonian entrepreneurs and venture capital investors Rain Rannu and Veljo Otsason were involved when Fortumo was established in 2007 and they were shareholders of the company both as private individuals as well as via the company Mobi Solutions.

Fortumo's other owners included Intel Capital and Greycroft Partners, which acquired stakes in the company in 2012.

Incorporated in 2008, Boku is a leading global mobile payment and mobile identity company that is listed on the London stock exchange. Boku's platform is linked to billing, identity and sales systems of more than 200 mobile wallets and network operators.

Boku's payment products enable mobile phone users to buy goods and services and charge them to their mobile phone bill or pre-pay balance. Its identity products are used to verify user details. Companies like Apple, Google, Facebook, Microsoft, PayPal, Spotify, and Sony use Boku to simplify sign-up, acquire new paying users and prevent fraud. In 2019, payments executed via Boku's platform totaled over five billion euros and the company earned a profit of 9.5 mln euros.

Fortumo, with customers in Europe and Asia, focuses on the emerging markets. Since inception, the company headquartered in Estonia has been enabling user acquisition, monetization and retention for app stores and digital service providers through its digital enablement platform. Fortumo's clients include Google, Amazon, Spotify, Sony and others. The company employs a workforce of approximately 80 people in Tallinn, Tartu, Madrid, Jakarta, Delhi, Singapore and Hanoi. Its sales last year grew by one-third to 35.8 mln euros and net profit totaled 2 mln euros, double the figure for 2018.