Australian mobile content and marketing expert Mercury Mobility has struck an agreement to merge with m.Net Corporation to combine what both companies boast will become the market's leading marketing and content business for handsets.

M.Net CEO Horden Wiltshire takes the same title for the enlarged company, while Mercury Mobility managing director Ben Grootemaat becomes an executive director.

Ex-Zomba Records Australasia managing director and current COO of Mercury Mobility Paul Paoliello will re-locate from Brisbane to Sydney in the new position of chief sales and marketing officer of the combined entity.

Joining Paoliello in Sydney is Mercury's head of content Stephen Lovchyld and account manager Christina Copley, and all staff will be based in the Yahoo7 building at Millers Point along with the Mnet sales team run by Kristy Manson.

"The mobile market is growing very quickly and the merger positions us to take advantage of the rapidly emerging opportunities in the industry," comments Wiltshire in a statement to the Australian Stock Exchange. "Combined we have an enviable client list and our two workforces now become part of a larger, stronger organization."

The agreement was signed last week by M.Net's three major shareholders -- Yahoo!7, Alcatel-Lucent and Telstra -- and is conditional upon the company's minority shareholders to agreeing to sell their M.Net shares to Mercury at a general meeting this October.

Mercury Mobility manages and hosts mobile content for a range of clients including 3/Vodafone Australia, Optus, Telecom New Zealand and Bell Canada, and works with all four majors and various key independent labels.