Brief: Link Mobility Acquires U.S. Based Message Broadcast, LLC Continuing Global Expansion
17/06/2021 07:53
June 17 (Reuters) - Link Mobility Group Holding ASA
LINKM.OL :
* LINK MOBILITY ACQUIRES U.S. BASED MESSAGE BROADCAST, LLC
CONTINUING GLOBAL EXPANSION
* ACQUISITION WILL ADD AN ESTIMATED NOK 232 MILLION AND NOK
143
MILLION TO LTM PRO FORMA 1Q21 GROSS PROFIT AND CASH EBITDA
* TRANSACTION VALUES MESSAGE BROADCAST AT AN ENTERPRISE
VALUE OF
USD 260 MILLION, IMPLYING A FORECASTED 2021 EV/EBITDA MULTIPLE
OF 10.8X.
* ACQUISITION WILL ADD AN ESTIMATED NOK 232 MILLION AND NOK
143
MILLION TO LTM PRO FORMA 1Q21 GROSS PROFIT AND CASH EBITDA
RESPECTIVELY.
* AT COMPLETION OF TRANSACTION, PURCHASE PRICE WILL BE
SETTLED 74%
IN CASH FUNDED BY EUR 170 MILLION TAP ISSUE COMPLETED ON 16 JUNE
2021 AND 16,755,069 MILLION NEW LINK SHARES TO BE ISSUED TO
SELLERS AT CLOSING.
* LINK MOBILITY REITERATES ITS 2024 PRO FORMA GUIDANCE OF
NOK 10
BILLION IN REVENUE AND ITS MID TO LONG-TERM TARGET OF 20%
ORGANIC REVENUE GROWTH
* LINK RETAINS ITS FINANCIAL TARGET OF NET DEBT/ADJUSTED
EBITDA
BELOW 3.5X
* ACQUISITION IS EXPECTED TO ADD AN ESTIMATED NOK 285
MILLION
(C.86% MARGIN) AND NOK 200 MILLION (C.60% MARGIN) TO LINK'S 2021
GROSS PROFIT AND CASH EBITDA RESPECTIVELY.
* ACQUISITION WILL BE IMMEDIATELY ACCRETIVE, INCREASING
LINK'S
EBITDA MARGIN FOR 2020 ON A COMBINED BASIS BY OVER +400 BASIS
POINTS
Source text for Eikon: ID:nWkr55jfzZ
Further company coverage: LINKM.OL
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