MeetMe to get Skout $28.5 million in funds and about 5.37 million common

brand-new WISH, Pa.–( BUSINESSES CABLE )–MeetMe, Inc. (NASDAQ: FULFILL), a community markets commander for social discovery, these days launched it has got performed a definitive arrangement to get Skout, a respected global cellular system for meeting new-people, for $28.5 million in money and around 5.37 million usual shares of MeetMe, implying an enterprise value of $54.6 million centered on MeetMe’s closing inventory terms on Summer 24, 2016. This exchange encourages MeetMe and Skout’s discussed plans to create the greatest global service for conference and chatting with new-people. The acquisition is anticipated to give you greater measure for monetization and increased profits for your merged team.

Skout is actually a leading mobile program for encounter new people with:

Important shows regarding the forecast level of this brand-new united team add:

• Cellphone MAU of 8.5 million, a rise of 69percent from MeetMe’s 5.0 million in-may 2016;
• Portable each day effective people (DAU) of 2.1 million, a rise of 73per cent from MeetMe’s 1.24 million in May 2016;
• Chats sent everyday of 57.2 million, a growth of 96per cent from MeetMe’s 29.2 million typical in Summer 2016;
• Cellular phone new registered users each day of 107,000, a growth of 65% from MeetMe’s 65,000 a day average in 2016.

Monetary effects of exchange:

• Expected to incorporate somewhat enhanced scale in consumer base and revenues, and exhibit stronger functioning leverage.
• Presuming a possible closure time of October 1, 2016, MeetMe would count on its 2016 financial leads to feel income of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
• Expect Skout to lead around $7.5 million of Adjusted EBITDA and become accretive to income in the first year post-closing.

Geoff make, CEO of MeetMe, mentioned, “We think this fusion supplies a path to $100 million in earnings in 2018 with adjusted EBITDA margins approaching 45 %. I will be delighted to carry two of the prominent mobile apps for meeting and chatting with new-people inside same collection. Skout is probably the earliest cellular personal finding treatments. I’ve understood and tracked the firm for more than eight many years. We discuss not just the same eyesight but in addition many of the exact same secret wedding metrics, including about exactly the same quantity of chats per user everyday, along with a familiar advertising-driven business model. I am excited because of the possible opportunity to work closely making use of their skilled personnel to accelerate growth and involvement across both programs across the world.”

“What’s considerably,” prepare carried on, “this statement will come during a period of powerful development for MeetMe, with May cellular DAU of 1.24 million, upwards 8percent versus the Q1 typical, and will cellular MAU exceeding 5.0 million the very first time in a thirty day period, or more 14percent versus the Q1 medium. We Think this exchange will more establish about this impetus, considerably increasing our size, and enabling continued improvements to your referral engine, speak, and Examine, getting a much greater effects and contact more consumers.”

We anticipate that Skout will stay a different brand and standalone mobile program adopting the finishing with the acquisition as well as its head office will remain in San Francisco, CA, therefore we posses prolonged offers of employment to their approximately 30 workers. Also, Skout’s founders Christian Wiklund and Niklas Lindstrom bring decided to assist with the changeover for example season after the finishing.

As studies have shown that users of personal knowledge apps typically use multiple at the same time, and given MeetMe and Skout show under 5per cent overlap among their monthly productive consumer base, we feel discover a very clear cross-promotional advantage between apps. The geographic combine normally complementary: while Skout’s premier country, like MeetMe’s, could be the united states of america, Skout is over 80per cent international and skews much more toward Asia, in which MeetMe enjoys over the years got small presence. MeetMe promises to accelerate the monetization of its intercontinental audience predicated on Skout’s effective track record on these opportunities.

David Clark, Chief economic policeman of MeetMe, added, “We count on the exchange to close in Oct of this season and to be accretive to earnings in order to generate extra no-cost cashflow for MeetMe in the first a year after the finishing and past. With time, we believe that through further synergies from incorporating all of our development platforms, enhancing our very own monetization motor, cross-promoting to each and every user base, and accelerating MeetMe’s intercontinental monetization, we can establish extra value with this purchase.”

The business needs to invest in the cash portion of the acquisition mainly from MeetMe money on hand and cash from businesses, and probably from other resources of financing open to MeetMe.

Canaccord Genuity is providing as economic advisor and Morgan, Lewis & Bockius LLP try providing as lawyer to MeetMe.

MeetMe Chairman John C. Abbott launched their resignation, effective straight away, to focus on their companies interests in Mexico and Brazil. “I am thrilled observe Skout get in on the MeetMe collection,” Abbott stated. “we’ve been tracking Skout for several years and are usually thrilled by the size and proportions produced by this fusion. Joining together a couple of premier cellular applications for satisfying new-people is precisely aimed using the Company’s longterm technique to develop an international commander in cellular social knowledge. With a stronger staff in place, I Am Aware the organization is during excellent possession, having stronger growth in accordance with brilliant customers facing they.”

Posting comments on Abbott’s resignation, prepare stated, “John’s original plans of a community marketplace leader for social advancement is an activity we intend to consistently implement against with singular focus, I am also happy for their many efforts to MeetMe throughout the last nine many years.”

Webcast and Summit Phone Call Facts

Management will coordinate a webcast and conference ask Tuesday, June 28, 2016 at 8:30 a.m. East time to discuss the acquisition. To get into the call dial 888-481-2877 (+1 719-325-2393 outside the U . S .) so when prompted provide the associate passcode 7649062 into user. Additionally, a webcast of this conference name is going to be available survive the trader Relations section of the Company’s site at www.meetmecorp.com and a replay regarding the webcast shall be readily available for 3 months.

About MeetMe

MeetMe® are a leading social media for fulfilling new people in the usa and the community market frontrunner for personal advancement (NASDAQ: FULFILL). MeetMe allows you to uncover new people to have a chat with on mobile devices. With around 90 per cent of website traffic via cellular and more than one million total day-to-day dynamic users, MeetMe is quick getting the personal get together spot for the cellular generation. MeetMe was a leader in mobile monetization with a varied money model comprising marketing, indigenous marketing, virtual currency, and registration. MeetMe programs can be found on new iphone 4, apple ipad, and Android in numerous 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, kindly visit meetmecorp.com.

About Skout

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