Reference is made to the stock exchange announcement from LINK Mobility Group ASA on the 22th of September 2017 regarding the signing of a term sheet for the acquisition of Italian mobile messaging company Archynet s.r.l. («Totalconnect»).
Totalconnect was established in 1998, and is located in Turin in Italy. Totalconnect has a strong position in the Italian mobile messaging market with direct interconnect with the Italian mobile operators. It is one of the leading mobile messaging and marketing providers in Italy and has launched many attractive new services within this space over the last years.
LINK has today signed a final Share and Purchase agreement for the acquisition of all the shares in Totalconnect from the seller Claudio Gioiosa. The acquisition is based on an agreed enterprise value of EUR 2,475 million on a cash-free and debt-free basis. The enterprise value is based on an estimated EBITDA for 2017 of EUR 0,450 million multiplied by a factor of 5.5. The Totalconnect business expects to generate pro forma revenues of approximately EUR 2 million, in 2017.
LINK has a solid cash position consisting from a strong cash flow from its operations and the successful tap of EURO 30 million from the LINK bond facility totalling EURO 175 (of which a total of EURO 80 million has been tapped), the cash part of the transaction will thus be fully financed through LINK´s corporate funds.
The transaction will be closed on 31st January 2018 and settled as follows:
Aabø-Evensen & Co Advokatfirma AS and DLAPiper Italy is acting as legal advisors to LINK in connection with the above mentioned transactions.
For further information, please contact:
Arild Hustad, CEO
LINK Mobility Group ASA
Mob: +47 95 24 19 30
About LINK Mobility Group ASA
LINK Mobility Group ASA is one of Europe’s leading providers within mobile communications, specialized in mobile messaging services, mobile solutions and mobile data intelligence. The Group offers a wide range of scalable services and solutions across industries and sectors due to the growing demand of digital convergence between businesses and customers, platforms and users. The Group is headquartered in Oslo/Norway and is listed on the Oslo Stock Exchange (ISIN: NO0010219702). LINK Mobility continues to experience strong organic growth with a high degree of recurring revenue as customers tend to move more business activities onto the mobile platforms. In 2016, LINK Mobility had a total turnover of 924 million NOK with offices in Norway, Sweden, Denmark, Finland, Latvia, Estonia, Bulgaria, Germany, Spain, France and Poland.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.