MeetMe to obtain Skout $28.5 million in funds and about 5.37 million usual

NEW DESIRE, Pa.–( BUSINESS CABLE )–MeetMe, Inc. (NASDAQ: MEET), a community market leader for social breakthrough, now launched this has accomplished a conclusive agreement to get Skout, a prominent international cellular community for encounter new people, for $28.5 million in earnings and about 5.37 million usual offers of MeetMe, implying an enterprise property value $54.6 million based on MeetMe’s shutting inventory cost on June 24, 2016. This acquisition produces MeetMe and Skout’s shared sight to generate the greatest global solution for fulfilling and chatting with new-people. The acquisition is expected to present higher size for monetization and increasing earnings for the blended team.

Skout was a prominent mobile application for encounter new-people with:

Essential highlights in the anticipated scale with the brand-new united company put:

• Mobile phone MAU of 8.5 million, a rise of 69percent from MeetMe’s 5.0 million in-may 2016;
• Cellphone daily energetic customers (DAU) of 2.1 million, an increase of 73% from MeetMe’s 1.24 million in May 2016;
• Chats delivered daily of 57.2 million, an increase of 96% from MeetMe’s 29.2 million medium in June 2016;
• Cellular phone new users a day of 107,000, a growth of 65% from MeetMe’s 65,000 a day average in 2016.

Economic effect of exchange:

• Likely to incorporate considerably increasing size in user base and revenue, and show strong functioning control.
• Presuming a possible completion day of Oct 1, 2016, MeetMe would expect their 2016 financial brings about feel income of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
• Expect Skout to add around $7.5 million of Adjusted EBITDA and get accretive to income in the 1st 12 months post-closing.

Geoff make, CEO of MeetMe, stated, “We think this mix produces a pathway to $100 million in sales in 2018 with adjusted EBITDA margins nearing 45 percentage. Im delighted to bring two of the biggest mobile programs for conference and communicating with new people in to the exact same portfolio. Skout is one of the earliest mobile personal finding providers. I’ve known and monitored the organization for longer than eight many years. We communicate not just exactly the same sight but in addition most of the same trick wedding metrics, like approximately similar number of chats per individual each day, along with a familiar advertising-driven business model. I am thrilled by opportunity to operate closely through its talented staff to accelerate development and wedding across both applications all over the world.”

“What’s considerably,” Cook continuous, “this announcement comes during a time period of strong progress for MeetMe, with May mobile DAU of 1.24 million, right up 8per cent versus the Q1 average, and may also cellular MAU exceeding 5.0 million the very first time in a 30 days, and up 14% versus the Q1 medium. We believe this purchase will further develop about momentum, considerably increasing our level, and enabling carried on advancements to the recommendation engine, talk, and Discuss, to possess a much greater effect and achieve more consumers.”

We count on that Skout will remain an independent brand name and standalone mobile software pursuing the closure associated with purchase as well as its head office will stay in bay area, CA, therefore we posses extended offers of jobs to the approximately 30 employees. Also, Skout’s founders Christian Wiklund and Niklas Lindstrom have actually agreed to assist with the change for example year following the closing.

As studies have shown that customers of personal development applications frequently make use of multiple while doing so, and provided MeetMe and Skout show around 5% convergence amongst their monthly effective individual base, we feel discover a clear cross-promotional perks between programs. The geographical mix is complementary: while Skout’s premier country, like MeetMe’s, may be the U . S ., Skout is over 80% worldwide and skews much more toward Asia, where chicas escort Aurora MeetMe has actually usually had little position. MeetMe intends to accelerate the monetization of their intercontinental audience considering Skout’s winning history in these areas.

David Clark, fundamental Investment policeman of MeetMe, included, “We expect the acquisition to close in Oct of the year also to become accretive to profits also to generate extra free of charge earnings for MeetMe in the first twelve months following the finishing and beyond. In time, we think that through added synergies from combining our very own innovation networks, optimizing our monetization system, cross-promoting every single user base, and accelerating MeetMe’s worldwide monetization, we can create additional value with this exchange.”

The Company anticipates to invest in the cash part of the purchase largely from MeetMe money on hands and earnings from businesses, and potentially from other sourced elements of funding open to MeetMe.

Canaccord Genuity is serving as financial advisor and Morgan, Lewis & Bockius LLP is providing as a lawyer to MeetMe.

MeetMe president John C. Abbott announced their resignation, efficient instantly, to spotlight his companies welfare in Mexico and Brazil. “Im excited observe Skout join the MeetMe profile,” Abbott mentioned. “we’ve been tracking Skout for many years and therefore are excited of the scale and proportions produced by this mix. Bringing together a couple of largest mobile apps for fulfilling new-people is precisely aimed using the Company’s overall strategy to create a worldwide frontrunner in mobile personal finding. With a very good professionals set up, I’m Sure the firm is within outstanding hands, having stronger gains with vibrant leads before it.”

Leaving comments on Abbott’s resignation, make said, “John’s initial sight of a general public industry commander for social development is an activity we intend to still implement against with singular focus, I am also thankful for their numerous contributions to MeetMe throughout the last nine years.”

Webcast and Conference Telephone Call Info

Management will host a webcast and discussion turn to Tuesday, June 28, 2016 at 8:30 a.m. Eastern time for you talk about the purchase. To view the call switch 888-481-2877 (+1 719-325-2393 outside the U . S .) once prompted provide the associate passcode 7649062 to your driver. Additionally, a webcast from the discussion label are available go on the individual interaction part of the Company’s web site at www.meetmecorp.com and a replay from the webcast shall be designed for 3 months.

About MeetMe

MeetMe® are a prominent myspace and facebook for encounter new people in the US while the general public markets leader for social knowledge (NASDAQ: FULFILL). MeetMe makes it simple to discover new people to talk with on mobile phones. With about 90 per cent of visitors from mobile and more than a million overall everyday active customers, MeetMe is quick becoming the personal collecting spot for the mobile generation. MeetMe is actually a leader in mobile monetization with a diverse profits product containing marketing and advertising, indigenous marketing, digital currency, and subscription. MeetMe applications can be found on iphone 3gs, apple ipad, and Android os in multiple languages, like English, Spanish, Portuguese, French, Italian, German, Chinese (regular and basic), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. To find out more, kindly visit meetmecorp.com.

About Skout

Regulation G – Non-GAAP Financial Strategies