USD5m acquisition of Notify Technologies Inc.October 3, 2013
FOR IMMEDIATE RELEASE
3 October 2013
GLOBO plc (“the Company”)
US$5m acquisition of Silicon Valley based Notify Technologies Inc.
Globo plc (LSE-AIM: GBO), the international leader and technology innovator delivering enterprise mobility management and telecom software products and solutions, has acquired the business and assets of Notify Technologies Inc. (“Notify”), a mobile technology company specialising in wireless mobility solutions and services, for a cash consideration of US$5 million.
Under an Asset Purchase Agreement, assets of US$0.35 million and liabilities of US$3.1 million, including US$2 million of deferred revenues, and approximately 60 employees will transfer to Globo’s US subsidiary.
Notify enablesorganisations to define, simplify and implement their mobility strategies, including the management of mobile devices.
Founded in 1994, Notify is located in San Jose, California, where all sales, marketing and finance personnel are located. Notify’s product development and technical support centre is located in Canfield, Ohio.
Notify offers businesses mobility solutions for addressing the Bring Your Own Device (“BYOD”) trend, enterprise mobility management, data loss prevention, and BlackBerry device management. Its products provide the management, control and oversight needed to maintain a secure and productive mobile environment for businesses of any size, and have been recognised by Gartner’s Magic Quadrant for Wireless Email for the past 6 years.
Notify’s products include:
· NotifyMDM, designed to provide IT administrators a single console to manage and secure corporate and individual mobile devices regardless of operating system, carrier, or email platform.
· NotifySync, a device application that provides BlackBerry users secure, real-time, wireless synchronisation to any email platform supporting ActiveSync.
· NotifyLink, an enterprise solution that provides mobile workers secure, real-time, wireless synchronisation to any email platform supporting ActiveSync.
Notify currently has approximately 1,800 customers in the financial services, government, healthcare, higher education, primary and secondary education and manufacturing sectors. Named customers include Oracle Corporation, Novell Inc., Securitas, True Value Company, Trinity Health, and The U.S. Equal Employment Opportunity Commission (EEOC). Additionally, Notify’s worldwide network of 26 partners includes carriers, distributors, resellers, systems integrators and complementary technology companies including well known firms such as Synnex and ConnecTel.
For 2012, Notify’s unaudited IFRS revenue and EBITDA were US$6.1 million and US$1.6 million, respectively. The acquisition of Notify will immediately be EBITDA enhancing and is expected to be earnings enhancing in its first full year.
The acquisition of Notify represents another significant step towards Globo’s strategic goalto become a global leader in the field of enterprise and consumer mobility. Specifically:
· The integration of NotifyMDM with GO!Enterprise technology will add MDM (Mobile Device Management) functionality, enabling Globo to compete more effectively during the mobile industry’s transition to mobility solutions based on “container” technology. Whilst Globo’s GO!Enterprise container based solution is the best technology for enabling BYOD, certain customers still demand MDM functionality. Following integration, GO!Enterprise will be the market’s most complete solution incorporating MDM, secure container technology and a cross mobile platform application development environment to build, distribute and manage apps.
· Notify establishes a presence in Silicon Valley with its 60 employees strengthening Globo’s U.S. development, research, sales and marketing teams, adding a high level of skills and knowledge to building and marketing corporate mobility products, as well as sales and marketing capability. This will allow Globo to accelerate its US expansion and generate “cross” and “up” sales opportunities from both the integration of technologies and leverage of existing customers of both companies.
During CTIA MobileCON later this month in San Jose, Globo will launch its GO!Enterprise V.2 which incorporates Notify’s MDM functionality.
Going forward, Globo’s management remains focused on its strategic goal to become a global leader in the field of enterprise and consumer mobility, and its near-term objectives are to:
· maintain organic growth, exploiting well-timed entries into key markets;
· increase business development efforts in the USA and Western Europe where the enterprise mobility and BYOD trends are most advanced;
· extend product capabilities through continued investment, whilst monitoring and balancing this against revenue contribution opportunities; and
· actively pursue suitable acquisition opportunities, which can improve Globo’s product capabilities, extend personnel skill-sets, enable entry into new markets and expand the client base.
Costis Papadimitrakopoulos, Chief Executive Officer commented:
“The acquisition of Notify significantly strengthens Globo’s competitive position to address the BYOD trend and accelerate growth in the US and elsewhere, as well as adding to our rapidly growing customer and revenue base.
In addition to MDM functionality, thereby opening up significant new business opportunities for GO!Enterprise during the industry’s transition to containerisation, Notify brings highly skilled and experienced people, our most valuable asset.
With current trading strong and organic growth underpinning our expansion, we are confident and excited about our future success.”
A call will be held for analysts and investors on Friday 4 October 2013 at
1600 hrs BST / 1100 hrs EDT / 0800 hrs PDT. To register your interest in joining the call, contact [email protected]
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Mike Jeremy, IRO
RBC Capital Markets
(Nominated Adviser & Broker)
Stephen Foss, Pierre Schreuder or Daniel Conti
Simon Bloomfield or Fiona Scholes