today announced this has performed a definitive arrangement to obtain Skout, a respected international mobile system for satisfying new people, for $28.5 million in money and roughly 5.37 million usual offers of MeetMe, implying a business value of $54.6 million considering MeetMe’s closing stock cost on Summer 24, 2016. This purchase promotes MeetMe and Skout’s contributed eyesight generate the greatest global service for fulfilling and chatting with new-people. The purchase is anticipated to produce better size for monetization and enhanced success for merged business.

Skout is actually a prominent mobile application for satisfying new-people with:

Key highlights regarding the expected scale regarding the new connected providers put:

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

Financial impact of acquisition:

• Expected to render somewhat improved level in individual base and earnings, and display strong functioning power.
• Assuming a possible finishing big date of Oct 1, 2016, MeetMe would count on their 2016 financial leads to become sales of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
• Anticipate Skout to add roughly $7.5 million of Adjusted EBITDA and stay accretive to profits in the 1st 12 months post-closing.

Geoff prepare, Chief Executive Officer of MeetMe, mentioned, “We feel this blend produces a path to $100 million in income in 2018 with adjusted EBITDA margins nearing 45 percentage. I will be delighted to bring two of the premier mobile programs for conference and communicating with new-people into the exact same collection. Skout is one of the initial mobile social advancement treatments. I’ve known and tracked the company for more than eight ages. We communicate just similar vision additionally many of the exact same trick wedding metrics, like around equivalent quantity of chats per consumer per day, including a familiar advertising-driven business structure. I am excited by chance to operate closely with the gifted teams to speed up development and engagement across both apps around the globe.”

“What’s most,” prepare persisted, “this statement comes during a time period of powerful progress for MeetMe, with might cellular DAU of 1.24 million, upwards 8per cent versus the Q1 medium, and may even mobile MAU surpassing 5.0 million the very first time in a 30 days, and up 14percent versus the Q1 medium. We Think this purchase will further develop about momentum, drastically increasing all of our measure, and allowing carried on progress to your recommendation system, talk, and Reveal, to have a much better effects and attain further users.”

We anticipate that Skout will remain a different brand name and separate cellular application following the finishing associated with the exchange and its headquarters will remain in San Francisco, CA, therefore we have prolonged features of job to the about 30 staff. Furthermore, Skout’s founders Christian Wiklund and Niklas Lindstrom bring approved assist with the transition for one seasons after the closing.

As research indicates that users of social knowledge programs typically make use of one or more concurrently, and provided MeetMe and Skout express under 5% convergence amongst their monthly productive consumer base, we believe discover a clear cross-promotional advantage between apps. The geographic combine can subservient: while Skout’s largest nation, like MeetMe’s, is the United States, Skout is finished 80% worldwide and skews most toward Asia, where MeetMe has typically had little position. MeetMe promises to accelerate the monetization of their worldwide readers centered on Skout’s winning track record on these marketplace.

David Clark, main monetary policeman of MeetMe, added, “We expect the exchange to close off in Oct for this 12 months also to end up being accretive to earnings and also to establish additional free of charge income for MeetMe in the first 12 months following the completion and beyond. After a while, we believe that through further synergies from incorporating our very own development platforms, enhancing our very own monetization system, cross-promoting every single consumer base, and accelerating MeetMe’s international monetization, we are able to create additional value out of this acquisition.”

The organization needs to invest in the cash part of the acquisition primarily from MeetMe cash on give and cash from procedures, and probably off their types of funding open to MeetMe.

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

MeetMe president John C. Abbott revealed their resignation, effective right away, to spotlight their business appeal in Mexico and Brazil. “I am thrilled to see Skout join the MeetMe profile,” Abbott mentioned. “we’ve been tracking Skout for several years and are also excited by the level and size created by this blend. Joining together a couple of premier cellular programs for meeting new people is precisely lined up together with the Company’s lasting technique to create a worldwide commander in mobile social knowledge. With a stronger staff positioned, I Am Aware the firm is actually exceptional arms, having powerful increases sufficient reason for vibrant customers before they.”

Posting comments on Abbott’s resignation, Cook mentioned, “John’s initial sight of a general public market frontrunner for personal knowledge is one thing we want to always execute against with single focus, I am also happy for his numerous benefits to MeetMe throughout the last nine age.”

Webcast and Discussion Telephone Call Information

Control will hold a webcast and convention ask Tuesday, June 28, 2016 at 8:30 a.m. East for you personally to discuss the exchange. To gain access to the decision dial 888-481-2877 (+1 719-325-2393 beyond your united states of america) once motivated offer the participant passcode 7649062 on the driver. Also, a webcast of this meeting telephone call should be readily available survive the trader interaction section of the Company’s website at www.meetmecorp.com and a replay of this webcast would be available for 3 months.

About MeetMe

MeetMe® is actually the leading social network for encounter new-people in america plus the community industry leader for personal breakthrough (NASDAQ: FULFILL). MeetMe makes it simple to learn new-people to have a chat with on cellular devices. With about 90 % of site visitors from mobile and most one million overall day-to-day dynamic customers, MeetMe is fast becoming the social meeting location for the cellular generation. MeetMe are a leader in cellular monetization with a varied money model comprising marketing and advertising, local marketing and advertising, virtual currency, and registration. MeetMe software are available on new iphone 4, iPad, and Android os in several languages, like English, Spanish, Portuguese, French, Italian, German, Chinese (vintage and Simplified), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. To find out more, please visit meetmecorp.com.

About Skout

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