Eur14 Million Proposed AcquisitionSeptember 23, 2015
23 September 2015
(“Globo” or “the Group”)
€14 million Proposed Acquisition
LONDON: Globo plc (LSE-AIM: GBO / OTCQX: GOBPY), the international provider of Enterprise Mobility Management (EMM), mobile solutions and software as a service (SaaS), announces that it has signed a conditional Letter of Intent (LOI) to acquire the business and assets of a Bring-Your-Own-Device (BYOD) and Mobile Security software provider (the “Company”) based in Europe. The Vendors of the Company have requested for commercial reasons that, until a final agreement is reached, the Company name remains confidential.
The Company offers a set of security solutions for the mobile industry with strong focus on BYOD and Mobile Applications Security. The Company has a successful track record with customers in the banking, finance and public sectors, and has built a strong reseller network including telecommunications companies, IT solutions providers and mobile technology players. The Company’s strategic value to Globo is to enhance the GO!Enterprise portfolio with certain aspects of security that are not covered in the current GO!Enteprise platform, and provide instant access to certain additional regulated financial markets. There is no current overlap between the Company’s and Globo’s personnel and customer bases.
The Company’s revenue is based predominantly on annual recurring license fees, and has a projected December 2015 year-end IFRS adjusted EBITDA of €900k, with considerable EBITDA growth predicted over the next two years. The basic terms of the LOI include a total acquisition value of €14.0 million with an upfront payment of circa €6.5 million. The remainder is then payable in a schedule of earn-outs based on successful delivery of profitability within the two years immediately following closure of the transaction. The initial portion of the acquisition will be paid in cash, whilst earn-outs will be based on a combination of cash and new stock in Globo plc, aimed at incentivising successful integration and performance of the Company.
Globo CEO Costis Papadimitrakopoulos commented:
“I am pleased to announce the signing of this LOI, as we have been acutely focused on this strategic transaction over recent months. The addition of both the technology and team will bring substantial benefits to Globo, enhancing our product portfolio with new functionalities and strengthening our solutions’ security. We expect that the acquisition will be completed during October and to be immediately earnings enhancing. We continue to evaluate other acquisition opportunities.”
The Letter of Intent is conditional on, amongst other things, satisfactory Due Diligence.
For further information please contact:
Costis Papadimitrakopoulos, CEO
RBC Capital Markets
(Nominated Adviser & Broker)
Chris Blundell or Charles Pemberton
Globo Plc is a global provider of complete enterprise mobility solutions and SaaS. Our GO!Enterprise (EMM) and GO!AppZone (MADP) offerings help businesses expand their engagement with employees and customers through the mobile channel via a secure and extensible environment that runs on all smart devices. The Group operates internationally through subsidiaries and offices in the U.S., U.K., Europe, Middle East and South East Asia. Globo was included in the 2014 Gartner Enterprise Mobility Management Magic Quadrant report, in Ovum’s 2014-15 Decision Matrix for EMM Solutions and 2015-16 Decision Matrix for MADP Solutions, and in IDC’s January 2015 report on Mobile Enterprise Application Development Platforms. For more information visit www.globoplc.com.