LINK Mobility Group ASA signs Term Sheet med intesjon om å kjøpe Finnish Labyrintti Group

Informasjon på engelsk:

LINK Mobility Group ASA (LINK) has entered into a term sheet regarding the acquisition of Finland’s leading provider of B2C mobile messaging services, the Labyrintti Group (Labyrintti).

LINK will acquire all shares in the companies Labyrintti Media Oy and Labyrintti International Oy. The sellers are the founders of the companies, Juha Miettinen and Teemu Lång.

LINK is prior to this acquisition of Labyrintti the leading provider of B2C mobile messaging and mobile services in the Norwegian, Swedish, Danish, Baltic and German markets. LINK will through the planned acquisition of Labyrintti become the leading provider of Northern Europe.

Labyrintti was established in 2001, has 11 employees in Tampere in Finland and 10 employees in its fully owned R&D company in Sofia in Bulgaria. In 2015 Labyrintti reported revenues of EURO 5.5 million and EBITDA of EURO 1.7 million. Labyrintti has a significant market share of the Finnish market for mobile messaging services.

“ We, the founders of Labyrintti, have developed our company into becoming the leading mobile messaging provider of Finland. Together with LINK we will get a great opportunity to expand into new markets. Furthermore, by combining the technologies, services and R&D capacities of LINK and Labyrintti we will become the innovative force of this business.” say Juha Miettinen and Teemu Lång, the Founders of Labyrintti.

“I am very happy to announce the acquisition of Labyrintti in Finland. Labyrintti is by far the leading force within mobile messaging and mobile solutions in the Finnish market, with more than 40% market share. They have a strong portfolio of satisfied customers, state of the art products and services, and a very competent and agile development facility in Sofia, Bulgaria. We really look forward for Labyrintti to join the LINK Group of companies, and I am 100% sure that Labyrintti will continue to develop the Finnish market strongly and contribute to the continued successful development of the LINK Group. We are now truly a Nordic and North European Company.” says Arild E. Hustad, CEO of Link Mobility Group.

The agreed enterprise value of Labyrintti is EURO 11 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:

EURO 4.2 million of the purchasing price in cash upon closing
EURO 3.8 million of the purchasing price in shares in LINK Mobilty Group ASA valued at the closing share price at the Oslo Stock Exchange 2 September 2016, NOK 120 per share
EURO 3 million 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
Additionally, an earn-out mechanism will allow for the following adjustment: If Labyrintti achieves EBITDA 2016 of EURO 1.9 million, the sellers will receive an extra EURO 0.4 million.

The acquisition is conditional upon a satisfactory result of the confirmatory due diligence process to be performed, and upon LINK Mobility Group ASA and the sellers 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 30 September 2016.

For further information, please contact:
Arild E. Hustad, CEO
LINK Mobility Group ASA
arild.hustad@linkmobility.com
Mob: +47 95 24 19 30

OR

IR Contact Siw Ødegaard
LINK Mobility Group ASA
Siw.odegaard@linkmobility.com
Mob: +47 95 75 98 48