Facebook (FB) has acquired mobile data optimization startup Onovo in a bid to fuel its worldwide Internet access program Internet.org. The acquisition also gives the social networker its first office in Israel.
Purchase price still a mystery
Confirmation of the deal was given by Onovo through a blog post. The startup mentioned in the blog that the company will be working as a standalone firm after the acquisition, and will continue providing apps that enhance the mobile data services of the mobile owners. Onovo has claimed that globally around millions of users use its app.
Facebook also released its statement following the deal but has not disclosed the acquisition price. However, according to news site Calcalist in Israel, the acquisition value is expected to be between $150 million and $200 million.
Acquisition strategically significant
Following the deal, the Onovo’s office in Tel –Aviv will be transformed into Facebook’s first office in Israel. Facebook seems to have made a strategically valuable acquisition as Onovo is a dominant firm in Israel, and in the recent times there have been many startups established in Israel. The purchase is also important as Facebook was unable to acquire Waze, which is now owned by Google, as the social networking company wanted the startup to relocate its office in Silicon Valley.
Onovo is a strategically important acquisition to Facebook, and it is very much evident as Facebook is looking forward to bring success to its initiative in providing internet to the approximate 5 billion people all over the world who are offline as of now.
Onovo is confident that services provided by them can assist emerging markets where customers have to pay pre-paid tariffs and the cost is often high, to avail more from their mobile data deals or smartphone credits. Purpose of Internet.org is to bring down the cost of data, which makes the acquisition of Onovo important.
Noting from the analytical point of view, acquisition gives an opportunity to Facebook, which is in the process to enhance its mobile apps, and recently did an alpha testing program for Android owners, trials with game developers and more.
Onovo in its blog post said that the company is eager to take the next step and leave a greater mark by supporting Facebook’s mission to connect to the world.