REG - LoopUp Group PLC - PGi Connect contract update

LoopupAnnouncement

07/09/2022 07:00

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RNS Number : 5165Y  LoopUp Group PLC  07 September 2022

7 September 2022

LOOPUP GROUP PLC

("LoopUp" or the "Group")

PGi Connect contract update

 

LoopUp Group plc (AIM: LOOP), the cloud platform for premium hybrid
communications, is pleased to announce an update on its agreement with PGi
Connect.

 

On 1 September 2022, the Group announced that it had entered into a revenue
sharing and customer transfer agreement with PGi Connect, which gives LoopUp
the rights to transfer materially all of PGi Connect's conferencing services
customers (but not its webcasting customers) over to LoopUp. While no initial
or fixed consideration is payable, the Group will pay PGi Connect a share of
revenue invoiced and received from successfully transferred customers for a
period of three years.

 

On Friday 2 September, PGi Connect sent out the first and largest batch of
contract assignment notices to c.8,100 of its enterprise customers concerning
the transition of services to LoopUp from 1 October 2022. These customers
currently generate an annualised revenue run-rate of c.£34 million to PGi
Connect.

 

While this is clearly a highly material level of assigned business, and while
more is expected to be assigned from PGi Connect to LoopUp in due course, the
Group nevertheless reiterates that after making prudent transition loss
assumptions for non-term-committed customers as well as general ongoing
business attrition, it expects the PGi agreement to generate revenue of
approximately £10 million and net cash contribution to the Group of
approximately £5 million over the twelve-month period from October 2022 to
September 2023.

 

Market abuse regulation:

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018.

 

For further information, please contact:

 LoopUp Group plc                                    via FTI
 Steve Flavell, co-CEO

 Panmure Gordon (UK) Limited                         +44 (0) 20 7886 2500
 Dominic Morley / Alina Vaskina (Corporate Finance)
 Erik Anderson (Corporate Broking)

 Cenkos Securities Limited                           +44 (0) 20 7397 8900
 Giles Balleny / Dan Hodkinson (Corporate Finance)
 Alex Pollen (Sales)

 FTI Consulting, LLP                                 +44 (0) 20 3727 1000
 Matt Dixon / Jamille Smith / Tom Blundell

 

 

About LoopUp Group plc

LoopUp (LSE AIM: LOOP) is a cloud platform for premium hybrid communications.
The Group's flagship Cloud Telephony solution for Microsoft Teams enables
multinational enterprises to consolidate their global telecommunications into
a single, consistently managed cloud implementation rather than disparate
implementations from multiple carriers. The Group's hybrid auditorium and
events solution, Hybridium (www.hybridium.com (http://www.hybridium.com) ),
brings unrivaled engagement and analytics to larger scale hybrid education,
training and events such as management onsites, departmental kick-offs,
capital markets days and thought leadership seminars.

 

The Group is listed on the AIM market of the London Stock Exchange (LOOP) and
is headquartered in London, with offices in the US, Spain, Germany, Hong Kong,
Barbados and Australia.

 

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