Velti acquires Media Cannon to expand its mobile ad business

Mobile ad firm Velti has acquired ad tool-maker Media Cannon so that clients will be able to create rich mobile ads more easily.

The deal shows that mobile advertising is continuing to gain momentum. Rivals are expanding as quickly as they can, given Google’s acquisition of AdMob and Apple’s purchase of Quattro Wireless.

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The price of the deal was not disclosed, but Velti said the acquisition will bring it new top-tier customers.

Last month, the Dublin, Ireland-based company filed for an initial public offering. In that filing, it said that annual revenue for the year ended Dec. 31 was $90 million, up 45 percent from a year earlier. Net income was $6.4 million, compared with a loss of $6.1 million a year earlier.

In 2009, Velti said it worked with 450 brands, advertising agencies, mobile operators and media companies, including 11 of the 20 largest mobile operators worldwide. Those customers used Velti’s platform to create 2,000 campaigns.

“We’re pleased to acquire an innovative company such as Media Cannon, which has forged relationships with well-known brands, advertising agencies and Tier-1 wireless carriers in the U.S.,” said Alex Moukas, chief executive of Velti, in a statement.

Moukas said this deal, as well as Velti’s acquisition of Ad Infuse last year, shows Velti’s commitment to the U.S. market.

San Francisco-based Media Cannon’s staff will be moved into Velti’s San Francisco office.