LINK Mobility Group ASA signs Term Sheet regarding acquisition of the German group of companies, Whatever Mobile

LINK Mobility Group ASA (LINK) has entered into a term sheet regarding the acquisition of Germany’s leading provider of mobile messaging services, the Whatever Mobile group of companies (Whatever Mobile).

LINK will acquire all shares in the companies Whatever Mobile GmbH, GfMB Gesellschaft für Mobiles Bezahlen mbH and Whatever SIM GmbH. The sellers are SPARK Consult GmbH, PlusCon Beratungsgesellschaft GmbH, Thomas Zahari and Yves Corssen.

LINK is prior to the acquisition of Whatever Mobile the leading provider of B2C mobile messaging and mobile services in the Scandinavia and Baltic markets. LINK will through the planned acquisition of Whatever Mobile continue its expansion to new markets.

Whatever Mobile was established in 2002, has 50 employees and is located in Hamburg, Germany. In 2015 Whatever Mobile reported revenues of EURO 23.1 million and EBITDA of EURO 2.7 million. Whatever Mobile has approximately 40 per cent of the market for mobile messaging services for the German financial sector.

”We, at Whatever Mobile have always wanted to be a part of an international organization within mobile messaging and mobile solutions. We believe that geographical reach is key in our mobile industry. And that becoming part of the LINK Mobility Group will accelerate our geographical expansion and give us a strong base to continue to innovate attractive mobile messaging and solutions to our existing and new customers.” says Michael Lutzenkirchen, the Founder and Managing Director of Whatever Mobile.

“Link Mobility has a clear strategy to become the leading mobile messaging and mobile solutions company in the Nordic Region and selected large European markets. We see the acquisition of Whatever Mobile as a strong strategic fit for our expansion plans. With Whatever Mobile we will in one stroke become the leading player in the large and untapped potential of the German Market. Many of the innovative mobile solutions that we have developed for our Nordic customers will be very attractive also for businesses in the German market. We are the mobilizing experts in the Nordic Region and with this acquisition we have taken our first steps into Europe.” says Arild E.Hustad, CEO Link Mobility Group.

The agreed enterprise value of Whatever Mobile is EURO 20.1 million, on a cash-free and debt-free basis and assuming a normalized level of net working capital. The purchase price under the transaction will, subject to customary adjustments, be settled as follows:

1/3 of the purchasing price in cash upon closing
1/3 of the purchasing price in shares in LINK Mobilty Group ASA valued at the closing share price at the Oslo Stock Exchange the day of the signing of the Term Sheet, NOK 79,50 per share
1/3 of the purchasing price as sellers’ credit to be paid back no later than 36 months from closing. The sellers’ credit will earn 5 per cent interest, payable by LINK in quarterly arrears
The acquisition is conditional upon a satisfactory result of the confirmatory due diligence process to be performed, and upon LINK Mobility Group ASA and SPARK Consult GmbH, PlusCon Beratungsgeschellschaft GmbH, Thomas Zahari and Yves Corssen agreeing on the terms and conditions of a legally binding share purchase agreement for the consummation of the transaction, containing, inter alia, customary closing conditions. The acquisition is furthermore subject to approval of the Board of Directors of LINK Mobility Group ASA.

The transaction is expected to close on 1 October 2016.

LINK is the leading provider of B2C mobile messaging and mobile services in the Scandinavian and Baltic markets. LINK is headquartered in Oslo, and has offices in Oslo, Bergen, Stockholm, Malmö, Copenhagen, Kolding, Riga and Tallinn. LINK has during the last years experienced stellar growth in terms of both revenue and profits. In 2015 LINK Mobility reported revenues of NOK 361.4 million and adjusted EBITDA of NOK 50.0 million.

For further information, please contact:

Arild E. Hustad, CEO
LINK Mobility Group ASA
[email protected]
Mob: +47 95241930

OR

IR Contact Siw Ødegaard, CFO
LINK Mobility Group ASA
[email protected]
Mob: +47 95759848