Bob Mobile AG announces the planned acquisition of mobile specialist Cliq BV – Expansion of international presence into over 40 countries, annual revenues increase to over € 95 million with an EBITDA of more than € 18 million post acquisition.
Bob Mobile AG announces the planned acquisition of mobile specialist Cliq BV – Expansion of international presence into over 40 countries, annual revenues increase to over € 95 million with an EBITDA of more than € 18 million post acquisition
• Complete takeover of Cliq BV planned as a milestone against the strategic plan of becoming a leading international provider of online games and mobile games
• Purchase price of Cliq BV is € 20 million in cash and 1.9 million new shares in Bob-Mobile
• Combined customer base of over 9 million customers in over 40 countries
• Strengthening of the management team: Cliq-CEO Luc Voncken will join the Bob Mobile executive Board
• In Parallel: increase of stake in Mobile Guerrilla Berlin to 100 percent
• Q3 results influenced by merger costs
• Outlook confirms growth track of Bob Mobile AG
• Extraordinary General Meeting on 22 December 2011
Bob Mobile AG (WKN A0HHJR, ISIN DE000A0HHJR3), 14.11.2011 – Bob Mobile AG, an international provider of online games and value-added mobile phone services, continues the logic of its dynamic growth strategy with the acquisition of Dutch mobile specialists Cliq BV. The planned acquisition of Amsterdam-based Cliq BV enables the Bob Mobile Group to expand its international presence significantly. With an expected combined annual turnover of over € 95 million, an EBITDA of over € 18 million and earnings per share of at least € 1.95 in fiscal 2012, the Group progresses to a new dimension of sales and earnings. The complete takeover of its Dutch competitor represents a significant step on the road to becoming a world leader in online games and mobile games.
Acceleration of international sales for Games
The intended acquisition of Cliq BV, which specializes in the sales and marketing of mobile phone products, also represents another important milestone in Bob Mobile AG’s strategic focus. With its foundation of Just A Game GmbH in 2010, Bob Mobile has created a second pillar in the gaming sector and particularly in online games. Roll-out of games via mobile phone customers and service subscribers is of special significance within this strategy. With support from the new subsidiary Cliq, the international distribution of games will be accelerated considerably in the future.
Acquisition of 100 percent
Bob Mobile will consolidate Cliq BV -which is aiming for a turnover of approximately € 60 million (€ 43 million net sales) and EBITDA of € 16.5 million for the full year 2011- with backdated consolidation from 1 October 2011. The purchase price for 100 percent of Cliq BV’s shares consists of € 20 million in cash and 1.9 million new Bob Mobile shares. Taking into account Cliq’s indebtedness of € 9.8 million (€ 6.8 million expected at closing) Bob Mobile will pay less than the 3.5 times 2011 EBITDA for the Dutch based company. To finance the acquisition, Bob Mobile has secured a bank loan. The issue of new Bob-Mobile’s shares is subject to approval in the Extraordinary General Meeting on 22 December 2011.
More than 9 million customers
“Cliq has excellent marketing expertise; immediately from day one, this unlocks new marketing opportunities for Bob Mobile – especially in relation to mobile phone games via marketing to this large customer base” says Bob Mobile board, Remco Westermann. “In addition, the country and geographic portfolios fit together perfectly, since there is hardly any overlap between them. Despite our strong organic growth in recent years, the majority of Bob Mobile sales are achieved in the German-speaking countries. Now including Cliq, Bob Mobile will have over 9 million customers per year, consisting of over 2.5 million active subscriptions, more than 2.5 million registered online players and more than 4 million other customers. This means that we will be able to offer a combined product portfolio with a potential reach of over 2 billion potential customers in over 40 markets, including all the major European countries; as well as Brazil, Canada and Russia” Westermann continues. In addition to a significant acceleration of growth, Westermann expects significant synergies on the costs side.
New Bob Mobile board
Luc Voncken, CEO of Cliq BV and future board member of Bob Mobile AG is looking forward to the merger of the two mobile specialists: “I am confident that together we will be able to play a significant role in the games market – in both the mobile phone and the online sectors.” As CEO of Cliq and designated CEO of the Just A Game GmbH, Luc Voncken will direct the two Bob-Mobile subsidiaries. The new Bob-Mobile’s Executive Board will consist of Remco Westermann as Chairman and Luc Voncken.
Increase in holdings at Guerilla Mobile
In parallel with the Cliq transaction, Bob will increase its stake in Guerrilla Mobile Berlin GmbH from 50.2 percent to 100 percent. Since its founding in 2008, Guerrilla Mobile Berlin GmbH has grown dynamically year-on-year and has since successfully established itself as a leader in the mobile content business, with an expected annual turnover of € 27 million. The underlying minority participation will be sold by the two co-founders and managing directors of Guerilla Mobile, Maurice Reimer and Oliver Thiel. Besides 362,500 new Bob-Mobile’s shares, the purchase price includes a performance-based cash component.
Just A Game developing well, however progressing below its high expectations.
With currently more than 2.7 million registered players, the Bob Mobile subsidiary, Just A Game GmbH, continues to develop and grow well. After a promising start to the year, in the third quarter of 2011, Just A Game was not fully able to realize the high sales growth expectations. This was caused by delays in the internationalization process and lower sales from the game licences division. On the positive side, the development of the online game “Operation Gamma 41” that, besides the existing flagship “War2Glory”, is developing very positively. Moreover, the increased international presence, the full integration of Guerrilla Mobile Berlin and the financial strength of the new Bob-Mobile Group’s will speed up the strategic realignment, with its focus on online games, and as from the fourth quarter of 2011 have a positive impact on the business development of Just A game. In the third quarter of 2011, Bob Mobile achieved sales of € 10 million (previous year: € 10 million). The EBITDA of € -0.3 million (previous year: € 1.2 million) was adversely affected by extraordinary expenses incurred in connection with the takeover of Cliq.
Taking into account the impact of Cliq BV, which is planned to be consolidated from 1 October 2011, Bob Mobile expects significant revenue and EBITDA growth for the full year 2011. Following the full integration of Cliq BV and Mobile Guerrilla Berlin, revenues in fiscal 2012 are expected to rise to over € 95 million, with an EBITDA of over € 18 million. With an increased number of shares -totaling approximately 3.95 million shares- following the completion of the transactions, earnings per share of at least € 1.95 are expected for 2012.
Implementation of the transaction requires the approval of the shareholders of Bob Mobile AG. An Extraordinary General Meeting is taking place on 22 December 2011. The general outlook is based on the assumption that there will be no unexpected adverse events of major significance and that the turbulent developments in the financial markets will not have a negative impact on operations.
The figures for the third quarter of 2011 are preliminary, unaudited and have not been subject to audit review.
About Bob Mobile AG:
Bob Mobile AG is a dynamic holding company focusing at the segments Online and Mobile Games, being based in Straelen, Germany. As leading marketer of mobile value added services, Bob Mobile has established direct-to consumer distribution in several European countries via its subsidiaries. From July 2010 onwards Bob Mobile is changing its focus towards the segment for online games. In 2010 the first freemium multiplayer online game ‘War2Glory’ has been launched. Since then ‘9Empires’ (roleplay) and ‘Operation Gamma 41’ (build&strategy) followed, further games are planned to follow. The subsidiary Just A Game GmbH also processes a successful license unit that internationally sources and distributes licenses. Bob Mobile specializes in selling its products direct to consumer via the internet, mobile internet and TV and cooperates closely with leading internet networks as well as television broadcasters. The Bob Mobile Group focuses on continueus profitable growth via expansion into new countries as well as via active product and services development.
Contact Bob Mobile AG:
Paesmühlenweg 8, D-47638 Straelen Phone: +49 (0)2834 9429209;
Fax: +49 (0)2834 46299409;
E-mail: Investor@bobmobile.com Internet: www.bobmobile.ag