brand new WISH, Pa.–( BUSINESSES LINE )–MeetMe, Inc. (NASDAQ: SATISFY), a community industry frontrunner for social development, today established it offers executed a conclusive contract to acquire Skout, a leading worldwide mobile community for satisfying new people, for $28.5 million in money and around 5.37 million common stocks of MeetMe, implying an enterprise property value $54.6 million considering MeetMe’s shutting inventory rates on Summer 24, 2016. This purchase encourages MeetMe and Skout’s shared plans to create the largest worldwide solution for appointment and communicating with new-people. The purchase is expected to convey greater scale for monetization and improved success for your combined providers.

Skout is actually a respected mobile software for encounter new-people with:

Key highlights from the envisioned scale in the latest connected company incorporate:

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

Monetary results of acquisition:

• Anticipated to create substantially enhanced scale in individual base and revenue, and exhibit stronger running control.
• Assuming a possible closure date of October 1, 2016, MeetMe would anticipate its 2016 monetary results to getting earnings of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
• Anticipate Skout to contribute more or less $7.5 million of Adjusted EBITDA and become accretive to earnings in the 1st 12 months post-closing.

Geoff Cook, President of MeetMe, said, “We think this fusion provides a path to $100 million in profits in 2018 with modified EBITDA margins nearing 45 percentage. I am delighted to bring two of the largest cellular software for appointment and emailing new people to the exact same collection. Skout is amongst the very first mobile social discovery providers. I’ve understood and monitored the company for more than eight ages. We show not simply equivalent eyesight but also lots of the same trick involvement metrics, such as approximately the same amount of chats per user daily, along with a familiar advertising-driven business design. I’m passionate of the possibility to run closely the help of its gifted group to accelerate gains and engagement across both programs all over the world.”

“What’s more,” prepare carried on, “this statement arrives during a time period of strong progress for MeetMe, with might cellular DAU of 1.24 million, upwards 8% versus the Q1 average, and could mobile MAU surpassing 5.0 million for the first time in a 30 days, and up 14percent versus the Q1 typical. We believe this acquisition will furthermore create about this impetus, dramatically increasing our size, and making it possible for carried on modifications to our suggestion system, speak, and Reveal, to possess a much greater results and get to further users.”

We anticipate opening lines for tinder that Skout will remain another brand and standalone mobile program adopting the closing of the exchange and its particular head office will continue to be in San Francisco, CA, and we have expanded offers of job to the about 30 staff. Likewise, Skout’s founders Christian Wiklund and Niklas Lindstrom posses approved improve the transition for example season following the completion.

As studies have shown that customers of social breakthrough applications typically make use of more than one on the other hand, and considering MeetMe and Skout express around 5percent overlap amongst their monthly energetic user base, we think you will find a definite cross-promotional advantage between applications. The geographic combine is subservient: while Skout’s prominent country, like MeetMe’s, could be the united states of america, Skout has ended 80percent international and skews considerably toward Asia, in which MeetMe enjoys historically have little appeal. MeetMe promises to increase the monetization of the worldwide market centered on Skout’s successful background throughout these marketplaces.

David Clark, main Investment Officer of MeetMe, added, “We count on the acquisition to close in October of this year in order to be accretive to profits also to create further free income for MeetMe in the 1st one year following completion and past. As time passes, we feel that through added synergies from mixing all of our technology programs, enhancing the monetization motor, cross-promoting to every individual base, and accelerating MeetMe’s worldwide monetization, we are able to generate additional value out of this acquisition.”

The organization wants to fund the bucks part of the acquisition mainly from MeetMe cash on hand and profit from procedures, and possibly off their sources of funding available to MeetMe.

Canaccord Genuity try providing as monetary specialist and Morgan, Lewis & Bockius LLP are helping as a lawyer to MeetMe.

MeetMe Chairman John C. Abbott revealed their resignation, efficient straight away, to spotlight their companies interests in Mexico and Brazil. “i’m delighted observe Skout join the MeetMe profile,“ Abbott stated. „we’ve been monitoring Skout for many years and are also passionate of the scale and proportions produced by this combination. Joining together two of the premier mobile applications for satisfying new-people is exactly aligned together with the Company’s long-term strategy to develop an international chief in cellular personal development. With a solid team in position, I’m Sure the organization is actually excellent fingers, having strong progress sufficient reason for bright possibilities in front of it.”

Posting comments on Abbott’s resignation, prepare mentioned, “John’s initial plans of a general public market commander for personal knowledge is one thing we plan to continue steadily to perform against with singular focus, and I am thankful for their numerous efforts to MeetMe throughout the last nine age.”

Webcast and Discussion Telephone Call Details

Management will coordinate a webcast and meeting turn to Tuesday, June 28, 2016 at 8:30 a.m. East time for you to discuss the purchase. To get into the decision control 888-481-2877 (+1 719-325-2393 outside the US) when prompted offer the person passcode 7649062 on driver. On top of that, a webcast associated with the convention call is going to be offered survive the buyer interaction portion of the Company’s websites at www.meetmecorp.com and a replay from the webcast would be readily available for ninety days.

About MeetMe

MeetMe® is the leading myspace and facebook for encounter new-people in the usa and community markets chief for personal discovery (NASDAQ: FULFILL). MeetMe allows you to learn new-people to chat with on mobile phones. With about 90 percentage of website traffic from mobile and more than one million total everyday dynamic people, MeetMe is quick becoming the personal get together place for the cellular generation. MeetMe is actually a leader in cellular monetization with a varied profits design comprising marketing and advertising, local marketing and advertising, digital currency, and registration. MeetMe software can be obtained on new iphone 4, apple ipad, and Android os in several dialects, like English, Spanish, Portuguese, French, Italian, German, Chinese (classic and basic), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. To learn more, please visit meetmecorp.com.

About Skout

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