migme buys in Indonesia

Social networking company migme has announced the acquisition of two Indonesia-based companies, while finalising a $3.5 million convertible note issue.

migme announced today the purchase of social news site Hipwee Media Solutions and Shopdeca, which operates two retail sites.

The value of the acquisitions were undisclosed.

migme chief executive Steven Goh said the Hipwee acquisition would replicate the company’s service offering in other countries, such as India and the Philippines.

“Hipwee has always aimed to be the most influential media company for young Indonesians and joining migme will allow us to continue to pursue our mission in a whole new level,” he said.

Hipwee delivers curated and original community generated content focused on entertainment, relationships and travel, targeting Indonesian urbanities.

The team comprises 16 editorial and community staff, who write and curate content.

Shopdeca, meanwhile, will enable migme to launch its ecommerce operations in Indonesia with two retail sites, which provide curated lifestyle products for Indonesian consumers.

As part of the acquisition, Shopdeca founder Andreas Tharmin will join migme as global head of ecommerce.

“We’re gaining valuable local market expertise and we look forward to the acquisition being a positive contributor to group results in 2016,” Mr Goh said.

Meanwhile, migme also announced it had finalised the issue and placement of convertible notes at $1.10 per share conversion ratio and raising a total of $3.5 million.

The price of the notes were a 22 per cent premium to migme's opening share price.

In a statement, the company said the proceeds would be used to fund acquisitions and accelerate market penetration in Asia.

“The company believes raising funds via the convertible note issue is in the best interests of shareholders at this stage as it allows the business to better execute its expansion plans and achieve its stated objectives,” the company said.

Shares in migme were 2.2 per cent higher to 90 cents each at the close.