Signing completed in connection with acquisition of SMS.it in Italy

Reference is made to the stock exchange announcement from LINK Mobility Group ASA on the 26th of January 2018 regarding the signing of a term sheet for the acquisition of Italian mobile messaging company SMS Italia Srl (SMS.it). LINK Mobility has today signed a final Share Purchase Agreement for the acquisition of all shares in SMS Italia Srl from the seller A2P Ventures Ltd.

SMS.it is one of the leading mobile messaging providers in Italy. The company was the first in the world to provide mobile internet and mobile messaging services on a global scale. Located in Milano, with offices in Bologna, SMS.it is a mobile operator owning an independent mobile network, fixed network, signalling and SS7 interconnection, and has in place interworking agreements with all the Italian mobile operators and the primary MVNO’s.

The company doubled its revenues from 2015 to 2017 witnessing strong demand for its services in the Italian market.

“I am really happy to announce that we have now reached a final agreement with the sellers of SMS.it. The Italian market is growing strongly and the acquisition of SMS.it in Italy gives LINK a strong platform to continue growing the business and adding more innovative services to our existing and new customers.” says Arild E.Hustad, Group CEO LINK Mobility.

The acquisition is based on an agreed enterprise value of EUR 10.371 million on a cash-free and debt-free basis. The enterprise value is based on a normalized EBITDA for 2017 of EUR 1.503 million multiplied by a factor of 6.9. The structure of the deal is as follows:

• 1/3 of the purchase price to be paid in cash on closing
• 1/3 of the purchase price to be escrowed for 12 months
• 1/3 of the purchase price to be paid in shares at a share price of 144,8. There will be a lock up period of three years on the shares of which 1/3 of the shares can be sold in the market per year during the three year period

LINK has a solid cash position and the transaction will be fully financed through LINK´s corporate funds.

Aabø-Evensen & Co Advokatfirma AS, DLAPiper Italy and BDO Italy are acting as advisors to LINK in connection with the above mentioned transactions.

The transaction is expected to close 1st of June 2018.

For further information, please contact:

Arild Hustad, CEO
LINK Mobility Group ASA
[email protected]
+47 95 24 19 30