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MeetMe to Acquire Skout $28.5 million in finances and more or less 5.37 million usual

unique DESIRE, Pa.–( COMPANIES LINE )–MeetMe, Inc. (NASDAQ: FULFILL), a public markets commander for personal knowledge, nowadays launched it’s got performed a conclusive agreement to get Skout, a respected worldwide cellular network for encounter new people, for $28.5 million in money and more or less 5.37 million usual percentage of MeetMe, implying an enterprise property value $54.6 million considering MeetMe’s closing inventory rates on Summer 24, 2016. This purchase produces MeetMe and Skout’s provided sight to generate the greatest global services for meeting and communicating with new-people. The exchange is anticipated to supply better level for monetization and improved profits when it comes to blended business.

Skout try a number one cellular program for encounter new-people with:

Crucial features of the envisioned size of newer combined company consist of:

  • Mobile phone MAU of 8.5 million, an increase of 69% from MeetMe’s 5.0 million in May 2016;
  • Cellular phone every day effective users (DAU) of 2.1 million, an increase of 73per cent from MeetMe’s 1.24 million in May 2016;
  • Chats delivered everyday of 57.2 million, a growth of 96percent from MeetMe’s 29.2 million medium in Summer 2016;
  • Portable new registered users every day of 107,000, a rise of 65per cent from MeetMe’s 65,000 per day average in 2016.

Monetary effect of acquisition:

  • Anticipated to give notably increasing scale in consumer base and earnings, and display strong working leverage.
  • Presuming a potential closure go out of Oct 1, 2016, MeetMe would anticipate their 2016 financial brings about be Revenue of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
  • Anticipate Skout to add around $7.5 million of Adjusted EBITDA and be accretive to income in the 1st year post-closing.

Geoff Cook, CEO of MeetMe, mentioned, “We think this mix provides a path to $100 million in money in 2018 with modified EBITDA margins approaching 45 percent. I’m delighted to create two of the prominent cellular software for meeting and emailing new-people in to the exact same profile. Skout is one of the initial cellular personal knowledge providers. I’ve understood and monitored the organization for longer than eight years. We display not just the same eyesight but also most same secret engagement metrics, like about the exact same range chats per consumer daily, including a familiar advertising-driven business model. I’m excited by possibility to function closely and their gifted teams to increase gains and involvement across both apps around the globe.”

“What’s most,” make continuing, “this announcement will come during a time period of strong growth for MeetMe, with May cellular DAU of 1.24 million, up 8% versus the Q1 typical, that can mobile MAU surpassing 5.0 million the very first time in a thirty day period, or over 14per cent versus the Q1 medium. We Feel this exchange will more establish on this energy, dramatically increasing our very own measure, and enabling continued progress to your suggestion motor, cam, and Discuss, for a much greater influence and contact even more consumers.”

We expect that Skout will stay an independent brand and separate mobile software following closure regarding the acquisition and its head office will remain in San Francisco, CA, and now we have longer gives of work to its approximately 30 workforce. Likewise, Skout’s founders Christian Wiklund and Niklas Lindstrom has decided to benefit the transition for example seasons following the completion.

As research indicates that users of social development programs typically make use of multiple at the same time, and offered MeetMe and Skout express less than 5percent convergence among all of their month-to-month effective individual base, we think discover a definite cross-promotional advantages between applications. The geographic blend can be complementary: while Skout’s prominent nation, like MeetMe’s, is the U . S ., Skout has ended 80% worldwide and skews more toward Asia, in which MeetMe provides typically have little presence. MeetMe promises to accelerate the monetization of their international readers centered on Skout’s successful background on these opportunities.

David Clark, head Investment policeman of MeetMe, extra, “We expect the exchange to close off in Oct within this 12 months and getting accretive to revenue and produce added free income for MeetMe in the first a year after the closure and past. As time passes, we feel that through extra synergies from incorporating our very own innovation networks, optimizing our monetization system, cross-promoting every single user base, and accelerating MeetMe’s worldwide monetization, we can generate additional value using this purchase.”

The organization anticipates to finance the cash portion of the purchase mostly from MeetMe money on give and profit from procedures, and possibly from other resources of financing available to MeetMe.

Canaccord Genuity is actually offering as economic specialist and Morgan, Lewis & Bockius LLP was serving as lawyer to MeetMe.

MeetMe Chairman John C. Abbott revealed their resignation, successful instantly, to spotlight their companies passions in Mexico and Brazil. “i’m thrilled observe Skout get in on the MeetMe portfolio, » Abbott said. « we’ve been tracking Skout for many years and generally are passionate from the measure and proportions developed by this combination. Joining together two of the premier cellular applications for satisfying new people is precisely lined up because of the Company’s longterm strategy to develop a worldwide leader in mobile personal finding. With a strong team in place, I’m Sure the firm is in excellent fingers, having stronger development sufficient reason for vibrant possibilities before they.”

Leaving comments on Abbott’s resignation, prepare mentioned, “John’s initial plans of a community industry leader for personal advancement is a thing we plan to consistently implement against with single focus, I am also happy for his lots of efforts to MeetMe over the past nine years.”

Webcast and Seminar Telephone Call Facts

Management will coordinate a webcast and seminar call on Tuesday, June 28, 2016 at 8:30 a.m. East time for you talk about the exchange. To view the decision control 888-481-2877 (+1 719-325-2393 outside the usa) so when motivated offer the person passcode 7649062 towards the agent. Besides, a webcast on the conference call are going to be readily available go on the Investor connections part of the Company’s web site at www.meetmecorp.com and a replay with the webcast is designed for ninety days.

About MeetMe

MeetMe® are a leading social network for encounter new people in the usa additionally the general public market leader for social development (NASDAQ: SATISFY). MeetMe makes it easy to discover new-people to chat with on cellular mytranssexualdate devices. With around 90 % of visitors via mobile and most a million complete day-to-day dynamic customers, MeetMe is fast getting the personal meeting location for the cellular generation. MeetMe is a leader in cellular monetization with a diverse sales design containing marketing and advertising, indigenous marketing and advertising, virtual currency, and subscription. MeetMe software can be obtained on iPhone, iPad, and Android in several dialects, such as English, Spanish, Portuguese, French, Italian, German, Chinese (typical and basic), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. To learn more, please go to meetmecorp.com.

About Skout

Regulation G – Non-GAAP Investment Measures