MeetMe to obtain Skout $28.5 million in cash and about 5.37 million common

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Skout was a respected mobile software for meeting new-people with:

Essential shows of expected level of the newer united team incorporate:

  • Smartphone MAU of 8.5 million, a rise of 69percent from MeetMe’s 5.0 million in-may 2016;
  • Portable each day effective users (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, an increase of 96% from MeetMe’s 29.2 million typical in June 2016;
  • Mobile phone new registered users everyday of 107,000, an increase of 65% from MeetMe’s 65,000 a day average in 2016.

Economic results of purchase:

  • Expected to create somewhat increased scale in individual base and earnings, and demonstrate powerful operating control.
  • Assuming a potential completion day of Oct 1, 2016, MeetMe would count on the 2016 economic brings about end up being profits of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
  • Anticipate Skout to add about $7.5 million of Adjusted EBITDA and start to become accretive to profits in the first one year post-closing.

Geoff make, Chief Executive Officer of MeetMe, stated, “We think this blend supplies a pathway to $100 million in revenue in 2018 with adjusted EBITDA margins approaching 45 per cent. I am excited to take a couple of prominent mobile software for conference and chatting with new-people inside same collection. Skout most likely the initial mobile social discovery solutions. I’ve recognized and tracked the business for more than eight decades. We show not only equivalent eyesight but also many of the same trick wedding metrics, like around the same number of chats per individual each day, and additionally a familiar advertising-driven business model. I’m excited by the possible opportunity to run directly employing gifted group to increase growth and involvement across both software worldwide.”

“What’s most,” Cook continuing, “this statement arrives during a time period of strong growth for MeetMe, with will mobile DAU of 1.24 million, up 8per cent versus the Q1 medium, that can cellular MAU exceeding 5.0 million the very first time in a thirty day period, or over 14% versus the Q1 medium. We Feel this acquisition will furthermore develop with this momentum, dramatically growing the measure, and allowing carried on progress to our referral system, cam, and Reveal, to have a much greater impact and reach further people.”

We expect that Skout will continue to be a different brand name and separate mobile software after the completion of acquisition and its head office will remain in San Francisco, CA, therefore we need prolonged features of business to the more or less 30 staff. Also, Skout’s founders Christian Wiklund and Niklas Lindstrom have consented to benefit the changeover for 1 season following closing.

As studies have shown that users of social development programs usually need more than one likewise, and given MeetMe and Skout show lower than 5% convergence among their month-to-month effective consumer base, we feel there clearly was a definite cross-promotional profit between software. The geographic blend normally complementary: while Skout’s biggest country, like MeetMe’s, may be the usa, Skout is over 80per cent international and skews considerably toward Asia, in which MeetMe keeps over the years have small presence. MeetMe intends to increase the monetization of the worldwide audience considering Skout’s successful background in these industries.

David Clark, Chief Investment policeman of MeetMe, included, “We count on the acquisition to close in Oct for this year and feel accretive to earnings also to produce further free cash flow for MeetMe in the 1st one year after the completion and past. Eventually, we think that through further synergies from combining our very own tech systems, optimizing our very own monetization motor, cross-promoting every single user base, and accelerating MeetMe’s international monetization, we could generate extra value out of this exchange.”

The organization expects to finance the money part of the exchange mainly from MeetMe cash on hands and profit from operations, and probably from other sourced elements of funding accessible to MeetMe.

Canaccord Genuity is providing as economic advisor and Morgan, Lewis & Bockius LLP is helping as a lawyer to MeetMe.

MeetMe president John C. Abbott revealed his resignation, effective immediately, to focus on their companies interests in Mexico and Brazil. “I am thrilled observe Skout get in on the MeetMe profile,” Abbott said. “We have been monitoring Skout for quite some time consequently they are passionate by scale and size created by this mix. Joining together two of the premier mobile applications for encounter new-people is exactly lined up using Company’s overall strategy to develop a global frontrunner in mobile personal discovery. With a very good group set up, I’m Sure the business is actually outstanding hands, experiencing strong progress along with vibrant customers in front of they.”

Leaving comments on Abbott’s resignation, Cook stated, “John’s initial plans of a general public marketplace frontrunner for personal discovery is something we intend to continue to carry out against with single focus, I am also thankful for his a lot of benefits to MeetMe throughout the last nine age.”

Webcast and Discussion Telephone Call Info

Management will host a webcast and convention ask Tuesday, June 28, 2016 at 8:30 a.m. East time and energy to talk about the purchase. To get into the decision control 888-481-2877 (+1 719-325-2393 outside the united states of america) once encouraged offer the participant passcode 7649062 on the user. Besides, a webcast in the discussion name is offered go on the Investor Relations section of the Company’s internet site at and a replay of webcast are designed for 3 months.

About MeetMe

MeetMe® are a prominent social networking for satisfying new-people in the usa and also the community markets leader for social advancement (NASDAQ: FULFILL). MeetMe makes it simple to discover new-people to have a chat with on cellular devices. With about 90 percentage of visitors from cellular and most a million complete day-to-day dynamic users, MeetMe is fast becoming the personal meeting location for the mobile generation. MeetMe is a leader in cellular monetization with a diverse sales unit comprising marketing, indigenous advertising, digital money, and subscription. MeetMe applications are available on new iphone 4, apple ipad, and Android os in several dialects, including English, Spanish, Portuguese, French, Italian, German, Chinese (regular and basic), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. To find out more, please visit

About Skout

Rules G – Non-GAAP Economic Steps