LINK Mobility acquires Globalmouth AB’s mobile messaging business
LINK Mobility Group ASA’s fully owned Swedish subsidiary, LINK Mobility AB, acquires all shares in Globalmouth AB’s mobile messaging business Globalmouth Marketing AB.
LINK Mobility Group ASA (LINK), who prior to this transaction has approximately 25 per cent of the Swedish marked for B2C mobile messaging, will through the acquisition of Globalmouth Marketing AB further strengthen its position as the leading provider of B2C mobile messaging and mobile solutions in the Scandinavian and Baltic markets.
LINK has also entered into an agreement with Globalmouth Holding AB concerning a long term exclusive partnership agreement regarding mobile messaging services for Globalmouth’s remaining business. The parties will also work on joint customer development in the mobile messaging area.
“LINK and Globalmouth is a perfect match, and the acquisition will further strengthen our position as the leading provider of mobile messaging and solutions in Scandinavia and the Baltics. Globalmouth is at the forefront of providing solutions to cutting edge customer segments like gambling. The timing is also very good since the whole world is going mobile and LINK is continuously working to be at the forefront of this trend. LINK is the preferred partner for companies that wish to mobilize their business,” says, Arild E. Hustad CEO of LINK Mobility Group ASA.
“I am pleased to team up with LINK. I have no doubt that together we stand stronger. Globalmouth has always been a market leader when it comes to innovative mobile solutions, just as LINK is. By migrating our existing customer base in Globalmouth Marketing AB to LINKs Mobile Messaging platform, Globalmouth will have a strong partner and the opportunity to further develop our solutions to both new and existing clients. The newAgreement will strengthen the basis for future innovative mobile solutions“, says Pär Söderlund, chairman of Globalmouth Holding AB.
The agreed enterprise value of the transaction is SEK 12.2 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:
SEK 2.5 million will be paid in cash at closing
SEK 9.8 million will be settled during a one year earn out period based on the performance of Globalmouth Marketing AB
The enterprise value of the transactions is based on an earn out model with an EBITDA multiple of 4. The transaction is expected to close 1 October 2016.
LINK is the leading provider of B2C mobile messaging and mobile services in the Scandinavian and Baltic markets. LINK is headquartered in Oslo, and has offices in Oslo, Bergen, Stockholm, Malmö, Copenhagen, Kolding, Riga and Tallinn. LINK has during the last years experienced stellar growth in terms of both revenue and profits. In 2015 LINK Mobility reported revenues of NOK 361.4 million and adjusted EBITDA of NOK 50.0 million.
For further information, please contact:
Arild E. Hustad, CEO
LINK Mobility Group ASA email@example.com Mob: +47 95241930
IR Contact Siw Ødegaard, CFO LINK Mobility Group ASA
Mail: firstname.lastname@example.org Mob: +47 95759848
Pär Söderlund, Chairman of the Board Globalmouth Holding AB
+46 76 831 6241