Partnerships / Acquisitions

Boku Buys ID Authentication Co. Danal For $68M

Boku Shares Tumble After Purchase of Danal

Boku, a company that lets users charge smartphone purchases to their bills from companies like Apple, Microsoft and Spotify, among others, has purchased Danal, an outfit that specializes in phone identity and authentication, according to a report from a tech publication.

The merger will allow for better and more secure transactions, as well as expansion into potential new arenas, such as finance and government. Boku’s stock fell more than 23 percent on Thursday (Dec. 6) in response to the news.

The company expects the deal to dilute earnings in fiscal year 2019, but anticipates that things will improve through 2020 and beyond. Danal will combine with a U.S. subsidiary of Boku, and will no longer exist.

This acquisition allows us to offer services that go further and to improve user quality for our customers, while at the same time improving the mobile experience for users," said Boku Chief Executive Jon Prideaux. “Mobile commerce is booming, yet many tools were developed to support PC-based commerce. Danal has shown that MNO (mobile network operator) data can also combat fraud, reduce friction in signup and ensure regulatory compliance on mobile. These problems are relevant not just to our existing digital customers, but also in other sectors, including eCommerce, finance, transportation and government.

Boku is paying $68 million for Danal. The deal, which the company is calling a “reverse triangular merger,” includes 26.7 million Boku common shares of $0.0001 each, $3 million worth of Boku warrants at 141p each and also $1 million in cash. There’s also a deferred consideration of $64 million, depending on Danal’s future performance.

Boku wants to bridge carrier-held data with services users might engage with on phones or other digital platforms. While this will probably include purchases through billing, it also has potential applications to secure transactions for financial or government-run services, or any service that needs to authenticate a user.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.