Mobile marketing firm Snipp Interactive (TSXV:SPN) said Wednesday it signed a tentative sales and marketing deal with Intertainment Media Inc. (TSXV:INT).
Both companies signed a memorandum of understanding. The tentative deal would see each company promote their products and services to existing and potential customers. As a result, both companies would earn referral fees if new contracts are signed.
Financial terms of the deal were not disclosed in today’s release.
Intertainment’s customer base will be introduced to Snipp’s platform as it seeks to leverage its Ortsbo real-time chat translation application and its 212 million monthly users.
Ortsbo is a real-time chat translator which can be used with other social media sites like MSN, Google (NASADAQ:GOOG), Facebook (NASDAQ:FB) and Twitter.
Meanwhile, Snipp plans to introduce Intertainment’s products and services to Fortune 500 clients to create licensing models for agencies in Mexico and India to boost the presence of Ortsbo.
“Intertainment’s relationship with Snipp is the next step in the company’s strategy to provide revenue-centric platforms to our clients,” said David Lucatch, Intertainment’s chief executive officer.
“With our recent launch of our mobile and online social hub, Snipp provides us with the ability to add further value and monetization deliverables to a growing global mobile audience in 66 languages.”
Snipp provides print publishers, advertising agencies and corporate brands with a full suite of mobile marketing services in North America.
Intertainment is a media applications provider, which operates in two divisions: new media as well as graphic and print services.
Atul Sabharwal, CEO of Snipp added: “We see this relationship with Intertainment as a critical step to continue to move into global markets that are in need of mobile technology in their native languages.”
“We will leverage Intertainment’s great relationships and develop business opportunities that will allow financial benefit in addition to our current revenue model and technological growth to both of us.”
Shares of Intertainment Media traded at 21.5 cents each on the TSX Venture Exchange. Snipp’s stock jumped 5.56 per cent to hit 19 cents.