Brief: LINK Mobility To Acquire Soprano Design

LINK Mobility Holding ASA

18/05/2021 07:21

May 18 (Reuters) - LINK Mobility Group Holding ASA
 LINKM.OL :
    * LINK MOBILITY EXPANDING GLOBALLY
    * HAS TODAY AGREED AN EXCLUSIVE TERM SHEET TO ACQUIRE
SOPRANO
DESIGN, A GLOBAL CPAAS PROVIDER
    * PROPOSED TRANSACTION EXECUTES ON LINK'S IPO AMBITION TO
EXPAND
BEYOND EUROPE AND WILL ADD AN ESTIMATED AUD 109 MILLION (NOK 717
MILLION) AND AUD 27 MILLION (NOK 174 MILLION) TO 2021 PRO FORMA
REVENUE AND CASH EBITDA RESPECTIVELY
    * LINK WILL AT CLOSING ISSUE 88,706,339 NEW SHARES AT A
PRICE OF
NOK 38.65 PER SHARE TO SETTLE TRANSACTION
    * TERM SHEET VALUES SOPRANO AT A FORECASTED FISCAL YEAR 2021
EV/CASH EBITDA MULTIPLE OF 19.7X.
    * REMAINING AUD 25 MILLION (NOK 161.5 MILLION) SETTLED IN
CASH
    * TRANSACTION IS PLANNED TO CLOSE DURING SECOND HALF OF 2021
    * REITERATES ITS 2024 PRO FORMA GUIDANCE OF NOK 10 BILLION
IN
REVENUE
    * REITERATES MID TO LONG-TERM TARGET OF 20% ORGANIC REVENUE
GROWTH
    * PROPOSED ACQUISITION WILL BE ACCRETIVE TO LINK'S MARGINS
WITH
FORECASTED FISCAL YEAR 2021 GROSS PROFIT AND CASH EBITDA BEING
AUD 58 MILLION (NOK 382 MILLION) AND AUD 27 MILLION (NOK 174
MILLION) RESPECTIVELY
    * SOPRANO EXPECTS CONTINUED HIGH ORGANIC REVENUE GROWTH AND
STRONG
PROFITABILITY, WITH GROSS PROFIT AND CASH EBITDA GROWTH REPORTED
AT 18% AND 20% RESPECTIVELY FOR FISCAL YEAR OF 2021.
    * LINK MOBILITY - SHOULD TRANSACTION CLOSE, LINK INTENDS TO
INCREASE ADJUSTED EBITDA MARGIN FORWARD LOOKING STATEMENT TO
REACH 15-17% BY 2024

Source text for Eikon:  ID:nObihJQsta 
Further company coverage:  LINKM.OL 

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