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 ViaNett AS and its fully owned subsidiary Sendega AS.
LINK intends to acquire all shares in ViaNett AS from TargetEveryOne AB, a listed company on Nasdaq First North in Stockholm.
ViaNett was established in 1998, and acquired Sendega AS in 2014. ViaNett has a total of 1.100 customers in Norway and Sweden. ViaNett/Sendega has experienced solid growth during the last years, and is expecting a 2017 revenue of NOK 94 million and an EBITDA of NOK 17 million.
As part of the transaction, LINK will get the exclusive right to provide SMS gateway services to TargetEveryOne and its partners for a period of 4 years.
"We are very pleased to announce this agreement to acquire ViaNett and Sendega. LINK will strengthen its position in the Norwegian and Swedish markets, broaden its range of mobile solutions services and increase its innovative capacity. After the acquisition, LINK will have a total of 7.400 enterprise customers that will all be offered attractive multimessaging and mobile solutions to assist them in the interaction with their customers" says Arild E. Hustad, CEO of LINK.
We want to streamline our global strategy and focus even stronger on our core business by gaining market share in the world market with our scalable insight driven 1-to-1 marketing solution says Bjørn Forslund, CEO of TargetEveryOne.
The agreed enterprise value of the transaction is NOK 93.5 million, on a cash-free and debt-free basis and assuming a normalized level of working capital. The enterprise value is based upon an estimated EBITDA for ViaNett in 2017 of NOK 17 million multiplied by a factor of 5.5, and will be subject to adjustments if the actual EBITDA differs from the expected EBITDA.
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 valued at the share price at the Oslo Stock Exchange at the time of the announcement of the term sheet
- 1/3 of the purchasing price as seller's credit to be paid by equal monthly instalments over 24 months. Interest of 4.75% per annum is to be paid monthly
The acquisition is conditional upon a satisfactory result of a confirmatory 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.
LINK has a solid cash position due to strong cash flow from its operations and the successful placement of an 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 30 June 2017.
24 May 2017
For further information, please contact:
IR Contact Siw Ødegaard
LINK Mobility Group ASA
Mob: +47 95 75 98 48
CEO Bjørn Forslund
Mob: +47 484 83 838
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, 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.
ViaNett is a specialist in mobile messaging and mobile payment, with a strong Norwegian and Swedish customer portfolio of 1.100 enterprise customers. ViaNett is No. 1 on donation solutions via SMS in Norway. ViaNett has experiences solid organic growth in revenue and profits during the last years.
This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.