LINK Mobility Group ASA Signs Term Sheet Regarding Acquisition of Totalconnect in Italy
OSLO, Norway, Sept. 22, 2017 /PRNewswire/ -- LINK Mobility Group ASA ("LINK"), one of Europe's leading and fastest growing providers of B2C mobile messaging and mobile services, has entered into a term sheet regarding 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 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 new services within this space over the last years.
"I am glad to announce that we have taken our first step into the Italian market through the acquisition of Totalconnect. This is one of the pioneers within mobile messaging in Italy and has as strong customer base of more than 600 enterprise customers. Italy is an exciting market for LINK going forward, and I am sure that we will see large opportunities from introducing some of our more advanced mobile messaging and solution services. We will naturally look for additional opportunities in Italy to ensure that we reach our 40% market share ambition in this large and growing European market," says Arild E. Hustad, CEO of LINK.
"I am very happy selling my company that I started in 1998 and joining LINK. We see strong growth in the Italian market and I believe that teaming up with LINK and its portfolio of mobile solutions services that we shall continue to grow our business strongly going forward. I personally wanted to find an international partner to take my current business to the next level in Italy!" says Claudio Gioiosa, CEO of Totalconnect.
The agreed enterprise value of the transaction is EUR 2.475 million, on acash-free and debt-free basis and assuming a normalized level of working capital. The enterprise value is based on a normalized EBITDA of EUR 450,000 multiplied by a factor of 5.5.
The purchase price under the transaction will, subject to customary adjustments, expected to be settled as follows:
- 1/3 of the purchase price in cash upon closing,
- 1/3 of the purchase price as sellers' credit to be paid no later than 36 months from closing. Interest of 4.75% per annum is to be paid in quarterly arrears, and
- 1/3 of the purchase price of shares in LINK valued at the share price at the Oslo Stock Exchange today.
LINK intends to acquire all shares in Totalconnect from the seller Claudio Gioiosa, and the acquisition is conditional upon a satisfactory result of a due diligence process to be performed by LINK, and upon LINK and the seller agreeing on the terms and conditions of a final 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.
LINK has a solid cash position due to strong cash flow from its operations and the successful placement of a EUR 50 million bond in February 2017. The cash part of the transaction will thus be fully financed through LINK's corporate fund and bond.
The transaction is expected to close on or about 15 November 2017.
For further information, please contact:
LINK Mobility Group ASA
About LINK Mobility Group ASA
LINK is one of Europe's leading and fastest growing providers of B2C mobile messaging and mobile services. LINK believe strongly in the power of mobilizing the interaction between businesses and consumers and have developed a range of attractive solutions to meet this growing demand and market trend. LINK is headquartered in Oslo, and has offices in Oslo, Bergen, Stockholm, Malmö, Copenhagen, Kolding, Tampere, Helsinki, Madrid, Hamburg, Sofia, Riga and Tallinn. LINK has experienced stellar growth during the last years, in terms of both revenue and profits. In 2016 LINK delivered 3 billion mobile messages on behalf of its 6.300 customers, reporter a pro forma revenue of NOK 1 billion and had an adjusted EBITDA of NOK 122 million.
Totalconnect was established in 1998, and is direct connected to the Italian operators. Totalconnect is a Mobile Marketing services provider, serving clients in Italy as a reliable partner to setup mobile campaign and sending out mobile messages. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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