Mobile advertising agency, Velti has announced that it is buying fellow marketing agency, Mobile Interactive Group (MIG) for up to US$59 million.

MIG had more than $100 million in gross billings, more than $20 million in net revenues in 2010, and more than 160 employees. Velti said that the acquisition expands its lead as the world's largest mobile marketing company based on revenue, customers, consumer reach and technology holdings.

"The complementary strategic capabilities, geographic footprint and innovative customer solutions of our two companies create a global mobile marketing powerhouse," said Barry Houlihan, CEO and Founder of MIG. "Velti will drive significant economies of scale and innovation for our existing customers."

Velti will pay a minimum consideration of $25 million, including $20 million of cash at closing. Depending on MIG's performance, Velti may pay up to an additional $34 million over time by 2013. MIG's management will join Velti's global management team and will continue to operate the business.

Velti anticipates keeping in excess of $20 million of annualized US GAAP revenue from the acquisition, the majority of which is derived from recurring platform licensing, SaaS usage and performance fees.