Link Mobility Group ASA acquires PSWinCom AS

PSWinCom is providing mobile services for 2.500 Norwegian and international companies.

PSWinCom has 21 employees located in Oslo and Bergen. In 2013 the company reported revenue of MNOK 90,7 and EBITDA of MNOK 11. The company has experienced a solid growth during the last years, and is in 2014 expecting to generate revenue of MNOK 98,2 and EBITDA of MNOK 13,5.

Link Mobility will through the acquisition of PSWinCom strengthen its position as the largest provider of mobile services in the Norwegian market and become a major Nordic mobile service provider. By combining the two companies technical
platforms, operational resources, business models and highly skilled employees, Link Mobility will be well positioned for further expansions in the fast growingmarket for mobile messaging, mobile payment and mobile search.

The transaction value (enterprise value of PSWinCom AS) is MNOK 85,5, based on an assumed EBITDA of MNOK 13,5. MNOK 32 will be paid at closing, MNOK 25,65 will be paid in shares in Link based on a agreed price of NOK 27,5 per Link Mobility share and the remaining is sellers credit to be paid no later than 36 months after closing. The seller’s credit is to bear an interest of 5 percent p.a.

Of the total of 932.727 Link Mobility shares to be used in the settlement, Link Mobility owns 307.299. The shares were purchased in an open market tender at the end of October 2014. The shares were purchased at the price of NOK 24 per share.
625.428 new shares will be issued through a private placement towards Stabben AS, the seller of PSWinCom AS.

The cash settlement upon closing will be partly financed by short term loans from two of Link’s shareholders, Rugz AS and Sevencs AS. Link will borrow up to MNOK 10 from each of the two shareholders. The loans will bear an interest of 3 months NIBOR + 5 per cent.

The transaction will close on the 31th of December 2014.