With the purchase, Pure Vanilla Exchange now owns Nimble’s technology for stored value cards and its online payment system designed for secure transactions over the Internet.
Pure Vanilla customers purchase adult content or other Internet purchases by either funding an online account or by purchasing a PV card. The company touts its quick payments to online companies in as little as 96 hours.
Newly appointed CEO Steven Yevoli said that the consolidation of the two companies is geared to provide “a platform for growth that will benefit our clients and shareholders tremendously.”
Pure Vanilla and Nimble began their business relationship in Nov. 2005, shortly after Pure Vanilla’s launch three months earlier, with Nimble taking space in Pure Vanilla’s New York offices.
By Jan. 2006, the companies entered into a licensing deal over Nimble’s technology, with Pure Vanilla paying an initial fee of $500,000 and 10 percent of gross revenue.
With the deal, 16.8 million shares of Pure Vanilla common stock were issued to former Nimble stockholders. Pure Vanilla, an over-the-counter stock that trades on Nasdaq, was valued Tuesday at $2.42, down 28 cents.
The acquisition, which was initiated in December and closed earlier this month, brought significant changes to its executive office.
Florian Schuhbauer resigned as Pure Vanilla’s president and CEO but will continue to serve as a member of its board of directors.
Yevoli, who was formerly CEO and president of Nimble, was elected CEO of Pure Vanilla; he will remain as chairman of the board.
Pure Vanilla has been trying to boost its brand presence and lure new online adult consumers in the last six months, with radio spots in various U.S. markets and cash giveaways.
The company gave away $10,000 at the recent AEE in Las Vegas. Adult star Tera Patrick was on hand to match a winning Pure Vanilla card number and personally deliver the brick of cash to a U.S. soldier who attended the convention.
“It was a great way to top off a fantastic week,” Yevoli said.