News Articles

Smart Acquires CHIKKA
November 14, 2009

MANILA, Philippines - Smart Communications Inc. (the largest mobile carrier in the Philippines and a wholly-owned subsidiary of PLDT) has entered into a sale and purchase agreement to acquire 100 percent of Chikka Holdings, Ltd.  The transaction is expected to be closed sometime in late December, subject to the fulfillment of certain conditions, Smart officials said.  Sources told The STAR that this will entirely be a cash transaction.  However, both Smart and Chikka have not divulged the purchase price.

Chikka is a leading provider of enhanced mobile messaging services to mobile carriers around the world.  It is a pioneer in wireless applications services development, having created the world’s first mobile instant messenger to run on SMS (text messaging).Chikka is a wireless applications and services provider to over 30 networks in 17 countries including the US, UK, Spain, Italy, Japan and the Philippines.  The Chikka Messenger has 38 million registered users, including mobile subscribers from network operators worldwide.

Flagship Chikka Txt Messenger is the breakthrough combination of instant messaging and text messaging, allowing PC users to send text messages for free.  The recipient of the free text is charged a fee if he or she opts to reply.  Chikka powers services for mobile instant messaging and email accessible via SMS, mobile payment systems utilizing call credits, Free-Reply SMS for prepaid mobile subscribers in need of “top-up,” mobile-enabled auctions and matchmaking, as well as text, voice and visual mobile content.Chikka has since become a multi-platform company, creating mobile portals, and other value -added services that its partner GSM carriers offer to their subscribers and corporate customers. 

In 2003, Chikka entered into franchising agreements with partners in Thailand and in Indonesia that brought its services to major network operators in those countries.  It went on to break records for daily VAS SMS volume generated by existing providers, quickly establishing Chikka as a major content provider in these markets.Subsequently, Chikka also signed up with carriers in Singapore, Hong Kong and Japan for mobile messaging.  In 2005, the Chikka Messenger connected to major US carriers Cingular Wireless, Verizon Wireless, and AT&T Wireless, the top three mobile network operators in the US.  Together with Sprint, Alltel and other carriers today, Chikka gained connectivity to 100 percent of US mobile subscribers. 

Also that year, a partnership with Times Internet Ltd. (TIL), the new media arm of India’s media conglomerate BCCL, launched the Chikka Messenger to all major operators, to cover 90 percent of mobile subscribers in India.

The first quarter of 2007 saw the launch of Chikka Messenger in the United Kingdom all major mobile carriers, making the service available to over 70 million mobile subscribers.