Augme Technologies Inc. has signed a definitive agreement to acquire JagTag as it looks to expand in feature phones and bring new clarity to mobile marketing campaigns.

The deal lets Augme acquire substantially all of JagTag?s  assets  for approximately $5.25 million. The deal comes with patent MMS technology and an impressive list of JagTag clients such as Unilever, Pepsi and IBM.

?JagTag's proprietary technology speaks volumes about their ingenuity and forward-thinking mentality, while their patented technology shows that they are thought leaders within the mobile marketing space,? said David Apple, chief marketing officer of Augme Technologies, New York.

?Their MMS platform will allow great engagements for Augme's Ad Life within the non-smartphone market,? he said.

?Additionally, Augme will add and scale JagTag's recognizable symbology and allow for greater usage among mobile devices.?

Augme offers patented technology to enable mobile marketing campaigns using consumer response tags such as 2D bar codes, UPC codes, SMS and image recognition.

JagTag offers technology that enables marketers to communicate with customers via 2D bar codes, including its own proprietary codes which mobile users can scan without the need for an application.

Patents in play
One of the factors that made JagTag an attractive acquisition is a new patent it holds for a system providing ad serving to a mobile device via MMS. 

The system allows an ad to be served based on existing information.

For example, when someone sends a picture along with a note, the content of the ad can reflect what is in the message.

?JagTag's MMS patent deals with the collection of data surrounding customer interaction,? Mr. Apple said.

?This type of data will allow for analytics on a whole new level, bringing greater clarity to the causes and effects in play throughout the execution of a marketing campaign,? he said.

JagTag?s intellectual property portfolio also includes two additional patents that have been allowed and 12 pending patent applications.

Since Augme and JagTag?s offerings are complementary, Augme expects the deal with JagTag to be synergistic, helping to bolster its existing mobile marketing services.

A complete offering
Augme is also hoping the deal will help the company capitalize on the forecasted growth in mobile.

Gartner recently predicted that mobile advertising revenues will double in 2011 from last year to reach $3.3 billion.

?In the mobile marketing space, mobile platform technologies are being integrated into larger enterprise solutions to answer the need to scale and keep up with the engagement and tracking capabilities that mobile allows,? Mr. Apple said.

?The mobile advertising space is experiencing the same exponential increases in the ad network and ad exchange marketplace,? he said.

?JagTag brings upfront clarity and the proper environment when users engage in a mobile program. This, along with additional upcoming integrations, will solidify Augme's complete offering.?

Following the deal, Augme expects to have more than 150 brands either running active mobile marketing campaigns or having recently purchased such services.

Augme?s CEO Paul Arena will continue in his role while JagTag?s CEO will become the chief financial officer of Augme once the deal is closed.

?JagTag is a recognized and respected player in the mobile marketing arena,? Mr. Apple said. ?They bring good leadership and a highly respected technology suite to enhance our mobile offering.?

Final Take
Chantal Tode is associate editor on Mobile Marketer