MeetMe to obtain Skout $28.5 million in finances and roughly 5.37 million common

NEW WISH, Pa.–( COMPANIES LINE )–MeetMe, Inc. (NASDAQ: SATISFY), a community marketplace leader for personal development, today announced it has performed a conclusive agreement to get Skout, a number one worldwide mobile community for encounter new-people, for $28.5 million in funds and more or less 5.37 million typical offers of MeetMe, implying an enterprise value of $54.6 million centered on MeetMes closing inventory costs on Summer 24, 2016. This exchange encourages MeetMe and Skouts contributed eyesight to create the biggest global solution for meeting and communicating with new people. The exchange is expected to provide better scale for monetization and improved profitability for the blended organization.

Skout are a leading mobile application for fulfilling new-people with:

Key highlights for the expected measure associated with newer united company incorporate:

• Portable MAU of 8.5 million, an increase of 69% from MeetMes 5.0 million in May 2016;
• Cellphone daily active consumers (DAU) of 2.1 million, an increase of 73percent from MeetMes 1.24 million in-may 2016;
• Chats delivered everyday of 57.2 million, an increase of 96% from MeetMes 29.2 million typical in June 2016;
• Cellphone new registered users daily of 107,000, a rise of 65per cent from MeetMes 65,000 each day typical in 2016.

Investment effect of exchange:

• Likely to render considerably improved scale in consumer base and revenue, and display stronger functioning leverage.
• Presuming a possible closing big date of Oct 1, 2016, MeetMe would expect its 2016 economic results to be profits of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
• Count on Skout to lead roughly $7.5 million of Adjusted EBITDA and start to become accretive to revenue in the first one year post-closing.

Geoff make, President of MeetMe, stated, We believe this mix produces a path to $100 million in profits in 2018 with modified EBITDA margins nearing 45 percent. I am delighted to create a couple of largest mobile programs for conference and communicating with new-people into the same profile. Skout is probably the initial mobile personal advancement treatments. Ive known and monitored the organization for over eight years. We express not simply similar vision but additionally many of the same key wedding metrics, including roughly similar quantity of chats per individual daily, together with a familiar advertising-driven business design. I’m thrilled by possibility to operate directly with their gifted group to increase increases and engagement across both applications worldwide.

Whats much more, make continuing, this statement arrives during a time period of powerful growth for MeetMe, with might cellular DAU of 1.24 million, right up 8percent versus the Q1 typical, and may also mobile MAU surpassing 5.0 million for the first time in a 30 days, or more 14per cent versus the Q1 average. We believe this acquisition will more build on this subject energy, significantly increasing the scale, and enabling carried on modifications to the suggestion motor, cam, and Reveal, having an even greater effect and reach even more customers.

We expect that Skout will stay an independent brand and standalone cellular application pursuing the completion in the purchase as well as its head office will continue to be in san francisco bay area, CA, and then we has extended offers of jobs to their more or less 30 staff. Also, Skouts founders Christian Wiklund and Niklas Lindstrom have actually consented to assist with the transition for example season following finishing.

As studies have shown that customers of personal finding programs frequently incorporate multiple likewise, and offered MeetMe and Skout express significantly less than 5% overlap among all of their monthly active user base, we believe you will find a clear cross-promotional advantage between apps. The geographic mix is subservient: while Skouts premier nation, like MeetMes, is the United States, Skout is finished 80% worldwide and skews much more toward Asia, in which MeetMe has actually over the years http://datingmentor.org/america-chat-rooms have little existence. MeetMe promises to increase the monetization of its intercontinental market considering Skouts effective history on these industries.

David Clark, main economic Officer of MeetMe, included, We anticipate the purchase to shut in October with this seasons in order to feel accretive to profits also to generate added free of charge cashflow for MeetMe in the 1st twelve months pursuing the closure and past. Over time, we feel that through extra synergies from combining all of our innovation programs, optimizing our very own monetization system, cross-promoting to each consumer base, and accelerating MeetMes worldwide monetization, we could create extra value out of this purchase.

The firm needs to finance the money part of the acquisition mostly from MeetMe money on hands and earnings from operations, and probably off their sources of financing offered to MeetMe.

Canaccord Genuity is actually offering as monetary consultant and Morgan, Lewis & Bockius LLP are offering as lawyer to MeetMe.

MeetMe president John C. Abbott established his resignation, efficient straight away, to spotlight his business welfare in Mexico and Brazil. Im delighted observe Skout get in on the MeetMe portfolio,” Abbott stated. “we’ve been monitoring Skout for several years and generally are excited by scale and proportions created by this mixing. Combining a couple of biggest mobile apps for fulfilling new-people is precisely lined up making use of the Companys lasting technique to develop an international frontrunner in mobile personal finding. With a solid employees in position, I know the business is during outstanding hands, having stronger development and with vibrant possibilities in front of they.

Leaving comments on Abbotts resignation, Cook mentioned, Johns earliest sight of a general public markets chief for social finding is something we intend to continue to implement against with singular focus, I am also happy for their lots of contributions to MeetMe throughout the last nine decades.

Webcast and Meeting Label Information

Control will coordinate a webcast and summit turn to Tuesday, Summer 28, 2016 at 8:30 a.m. Eastern time and energy to talk about the acquisition. To gain access to the decision switch 888-481-2877 (+1 719-325-2393 outside of the United States) when encouraged offer the person passcode 7649062 to the driver. Besides, a webcast in the conference label are going to be available live on the trader connections part of the Companys websites at www.meetmecorp.com and a replay with the webcast should be readily available for 3 months.

About MeetMe

MeetMe was a leading social networking for satisfying new people in america therefore the public industry chief for social knowledge (NASDAQ: SATISFY). MeetMe makes it easy to find new-people to talk with on mobile devices. With approximately 90 % of website traffic via mobile and more than one million full daily dynamic users, MeetMe is fast getting the personal meeting spot for the cellular generation. MeetMe was a leader in mobile monetization with a diverse earnings model containing marketing and advertising, local advertising, virtual money, and registration. MeetMe applications can be obtained on iphone 3gs, iPad, and Android os in numerous dialects, such as English, Spanish, Portuguese, French, Italian, German, Chinese (conventional and basic), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. For more information, please visit meetmecorp.com.

About Skout

Rules G Non-GAAP Investment Measures