MeetMe to Acquire Skout $28.5 million in funds and around 5.37 million common

MeetMe to Acquire Skout $28.5 million in funds and around 5.37 million common

brand new WISH, Pa.–( COMPANY WIRE )–MeetMe, Inc. (NASDAQ: MEET), a public marketplace commander for personal finding, today announced it’s accomplished a conclusive arrangement to obtain Skout, a prominent global mobile system for satisfying new-people, for $28.5 million in money and around 5.37 million typical offers of MeetMe, implying an enterprise value of $54.6 million based on MeetMe’s closing stock costs on June 24, 2016. This exchange encourages MeetMe and Skout’s contributed plans to generate the largest global services for conference and communicating with new-people. The acquisition is anticipated to give greater measure for monetization and increased profits for blended team.

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

Key shows on the forecast scale associated with brand new united organization put:

  • Smartphone MAU of 8.5 million, a rise of 69per cent from MeetMe’s 5.0 million in May 2016;
  • Cellular phone daily energetic consumers (DAU) of 2.1 million, an increase of 73% from MeetMe’s 1.24 million in May 2016;
  • Chats sent every day of 57.2 million, a growth of 96% from MeetMe’s 29.2 million medium in June 2016;
  • Portable new registered users each day of 107,000, a rise of 65per cent from MeetMe’s 65,000 per day typical in 2016.

Financial results of purchase:

  • Likely to create notably increased measure in individual base and earnings, and show stronger running leverage.
  • Presuming a prospective completion big date of Oct 1, 2016, MeetMe would expect its 2016 financial results to feel sales of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
  • Expect Skout to contribute approximately $7.5 million of Adjusted EBITDA and become accretive to earnings in the 1st one year post-closing.

Geoff Cook, CEO of MeetMe, said, “We feel this blend produces a path to $100 million in sales in 2018 with adjusted EBITDA margins approaching 45 percentage. I am thrilled to bring two of the largest mobile software for fulfilling and communicating with new people into the exact same collection. Skout most likely the original cellular social finding services. I’ve known and monitored the firm for more than eight ages. We communicate not only the same eyesight but most of the exact same trick engagement metrics, like around equivalent range chats per individual daily, and additionally a familiar advertising-driven business design. I am excited by the opportunity to operate closely with their skilled staff to accelerate development and wedding across both software throughout the world.”

“What’s more,” Cook carried on, “this announcement appear during a period of strong growth for MeetMe, with May cellular DAU of 1.24 million, up 8percent versus the Q1 average, that can cellular MAU surpassing 5.0 million for the first time in a calendar month, and up 14per cent versus the Q1 typical. We Think this exchange will more develop on this impetus, considerably increasing our measure, and making it possible for continued improvements to your suggestion motor, cam, and Discuss, to own an even greater impact and contact more customers.”

We expect that Skout will remain a separate brand name and standalone cellular application pursuing the closing for the acquisition and its head office will stay in san francisco bay area, CA, so we posses offered offers of employment to its about 30 workforce. Likewise, Skout’s founders Christian Wiklund and Niklas Lindstrom need consented to benefit the changeover for example season following the closing.

As studies have shown that customers of social advancement software typically need several as well, and provided MeetMe and Skout share lower than 5percent overlap amongst their monthly energetic user base, we think there is an obvious cross-promotional profit between programs. The geographical mix normally subservient: while Skout’s premier country, like MeetMe’s, will be the U . S ., Skout has ended 80percent international and skews considerably toward Asia, in which MeetMe provides usually got small presence. MeetMe promises to increase the monetization of the international market centered on Skout’s winning history within these marketplace.

David Clark, main Investment Officer of MeetMe, extra, “We expect the acquisition to close off in Oct within this 12 months and to end up being accretive to earnings and also to create extra complimentary cashflow for MeetMe in the 1st one year following finishing and beyond. Over time, we believe that through further synergies from incorporating the innovation systems, enhancing our very own monetization motor, cross-promoting every single consumer base, and accelerating MeetMe’s intercontinental monetization, we can build extra value with this purchase.”

The business needs to fund the bucks portion of the exchange mostly from MeetMe money on hand and money from surgery, and potentially from other sources of funding offered to MeetMe.

Canaccord Genuity is actually helping as economic consultant and Morgan, Lewis & Bockius LLP is actually serving as lawyer to MeetMe.

MeetMe president John C. Abbott announced their resignation, effective straight away, to spotlight his businesses passion in Mexico and Brazil. “i will be delighted to see Skout join the MeetMe collection,” Abbott said. “we’ve been monitoring Skout for many years as they are thrilled of the measure and proportions created by this fusion. Joining together two of the premier mobile apps for satisfying new people is precisely lined up utilizing the Company’s overall technique to develop a major international frontrunner in cellular personal development. With a substantial employees positioned, I Understand the organization is in outstanding possession, experiencing powerful progress along with brilliant leads before it.”

Posting comments on Abbott’s resignation, make stated, “John’s original eyesight of a public marketplace commander for personal finding is something we intend to continue to perform against with single focus, I am also thankful for their numerous contributions to MeetMe over the past nine ages.”

Webcast and Convention Label Info

Management will hold a webcast and convention turn to Tuesday, June 28, 2016 at 8:30 a.m. Eastern time and energy to discuss the purchase. To view the decision dial 888-481-2877 (+1 719-325-2393 beyond your U . S .) so when caused supply the person passcode 7649062 for the user. Also, a webcast with the discussion label is offered survive the Investor interaction portion of the Company’s web site at and a replay associated with the webcast are available for 3 months.

About MeetMe

MeetMe® try a prominent myspace and facebook for satisfying new people in the usa and also the general public marketplace frontrunner for social finding (NASDAQ: FULFILL). MeetMe allows you to locate new-people to have a chat with on mobile devices. With roughly 90 percentage of visitors via cellular and more than one million overall day-to-day dynamic customers, MeetMe is quick getting the personal collecting spot for the cellular generation. MeetMe try a leader in mobile monetization with a diverse sales model comprising advertising, native marketing and advertising, virtual currency, and registration. MeetMe apps can be obtained on new iphone, iPad, and Android in numerous dialects, including English, Spanish, Portuguese, French, Italian, German, Chinese (classic and Simplified), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. To find out more, please visit

About Skout

Rules G – Non-GAAP Economic Methods

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