Motricity planning secondary common stock offering

Six months after mobile content solutions provider Motricity began trading on the NASDAQ Global Market, the firm said it intends to file a registration statement with the Securities and Exchange Commission to sell shares of common stock currently held by certain pre-IPO investors. The move follows a registration notice received from Koala Holding LP, an entity controlled by financier and corporate raider Carl Icahn, who retains an 18.5 percent beneficial ownership interest in Motricity. According to Motricity, the common stock shares in question may be registered for resale, with the amount of such shares dependent upon responses the company receives from stockholders party to its registration rights agreement. Any offering would take place no earlier than January 2011.

Motricity adds it plans to register shares for issuance and sale to be sold in any over-allotment option in the offering, if exercised. If so, Motricity will leverage the net proceeds for general corporate purposes, including potential business and technology acquisitions.

Last month, Motricity reported third quarter 2010 revenues of $37.9 million, up 35 percent from $28.1 million in the year-ago quarter. According to Motricity, managed services revenues increased 19 percent to $24.2 million, while professional services revenue surged 78 percent to $13.7 million. The company credits the growth in professional services revenue to large implementation projects for AT&T (NYSE:T) and Indonesian mobile operator XL Axiata. Motricity also powers Reliance Communications' new R World mobile data portal, promising the Indian operator giant's 120 million subscribers one-button access to personalized data and web solutions.

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