TIDMIMO
RNS Number : 1830V
IMImobile PLC
01 November 2017
IMImobile PLC
("IMImobile" or the "Company" or the "Group")
Acquisition of the trade and assets of Sumotext Corporation and
Trading Update
IMImobile, a cloud communications software and solutions
provider, is pleased to announce that it has agreed to acquire the
trade and assets of the Sumotext Corporation ("Sumotext"), an
established US based communications platform provider ("the
Acquisition"). The consideration, will be between $4.5 million and
$6 million, depending on EBITDA performance of the acquired
business during the first 12 months following the Acquisition.
Sumotext helps brands, agencies and non-profit organisations
communicate and complete commercial transactions with mobile
audiences via SMS and MMS. The Acquisition is therefore
complementary to both IMImobile's product set and customer
base.
Management believes that this strategic acquisition provides a
platform to launch IMImobile's product offering to the enterprise
market in the US. As a result of the Acquisition the Company
expects to make significant investment in sales and marketing
expenses for the US market during the current year and that the
Acquisition will be earnings enhancing in the year ending 31 March
2019.
Highlights:
Acquisition
-- Sumotext is an experienced business in the US communications
platform market and has various clients made up of a government
agency, travel companies, retailers, healthcare companies and other
brands, agencies and non-profit organisations.
-- Sumotext's customer and product portfolio is complementary to
existing IMImobile products and solutions, providing significant
cross-sell and up-sell opportunities.
-- This Acquisition is aligned with pursuing IMImobile's broader
strategic plan to enhance its position in the US market.
-- The Acquisition is expected to enhance Group earnings during the year ending 31 March 2019.
Trading update
-- Trading for the six months ended 30 September 2017 in line with directors' expectations.
-- Significant investment of approximately GBP0.5m in sales and
marketing activities in the second half of the current financial
year to take advantage of market opportunities for cloud messaging
product portfolio
-- Current year revenue and gross profit expected to be above market expectations.
Commenting on the Acquisition Jay Patel, Chief Executive Officer
of IMImobile said:
"The acquisition of Sumotext strengthens our position in the US
communications software market. The Sumotext team is experienced in
selling and delivering business critical communication solutions to
a number of leading US brands. This acquisition provides a strong
platform for growth into the enterprise market in North
America."
Background to and reasons for the Acquisition
Sumotext is an established and leading provider of messaging
solutions in the US, based in Little Rock, Arkansas. The
Acquisition enhances IMImobile's position in the US market and
consolidates its footprint within the region. The US market is
competitive, and the experienced team at Sumotext will provide
valuable expertise as well as an established customer base made up
of a government agency, travel companies, retailers, healthcare
companies and other leading brands, agencies and non-profit
organisations.
A key attraction of the Acquisition for IMImobile was the
experience and skills of the founder of Sumotext, Tim Miller, who
has agreed to join the Group as a member of the senior management
team, and will maintain leadership of the Sumotext business.
The Acquisition is complementary to IMImobile's product set,
providing mobile solutions that enable businesses to manage digital
interactions with their customers. As a result of the Acquisition
we see many opportunities for growth in the US region and we will
work to use the Sumotext business to penetrate the enterprise
market, and expect it to be earnings enhancing during the year to
31 March 2019.
Trading update
The Board is pleased to provide the following trading update
ahead of the Company's interim results announcement on 21 November
2017.
The first half of the year has seen trading in line with
management expectations, with good overall organic gross profit
growth. The Board remains confident about the Group's prospects for
the remainder of the year and expect underlying revenue and gross
profit to be ahead of expectations.
We see many opportunities for further growth, particularly in
the enterprise market in the US and UK. Following the Acquisition,
in order to capitalise on product leadership and market
opportunities, IMImobile intends to increase sales and marketing
expenses in the second half of the current financial year by
approximately GBP0.5m, the benefits of which we expect to be
realised in the financial year ending 31 March 2019. Prior to this
planned investment underlying EBITDA for the full year was expected
to be in line with expectations.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR")
For further information please contact:
IMImobile PLC c/o Redleaf Communications
Jay Patel, Chief Executive Officer Tel: +44 (0)20 7382
Mike Jefferies, Chief Financial Officer 4769
Redleaf Communications - PR adviser Tel: +44 (0)20 7382
Charlie Geller 4769
Alina Haritonova imimobile@redleafpr.com
Investec Bank - Nominated Adviser and Joint Broker Tel: +44 (0)207 597
Henry Reast 5970
Robert Baker
Whitman Howard - Joint Broker Tel: +44 (0) 207
Ranald McGregor-Smith 659 1234
Francis North
About IMImobile PLC
IMImobile is a cloud communications software and solutions
provider that enables companies to use mobile and digital
technologies to communicate and engage with their customers.
Organisations that trust us to deliver smarter digital customer
engagement solutions include Vodafone, Telefonica, Aircel, Capita,
BT, BSNL, Ooredoo, MTN, France Telecom, Centrica, Pizza Hut, Tata,
the AA, the BBC, EE, Multichoice, Betfair and several major
financial institutions.
IMImobile is headquartered in London with offices in Hyderabad,
Atlanta, Dubai and Johannesburg and has over 950 employees
worldwide. IMImobile PLC is quoted on the London Stock Exchange's
AIM market with the TIDM code IMO.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 01, 2017 03:00 ET (07:00 GMT)
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