SOFIA (Bulgaria), June 28 (Bulgaria) - Norway’s LINK Mobility Group said on Friday it has entered into a term sheet regarding the acquisition of Bulgarian mobile messaging company Voicecom.
“As part of LINK Mobility we will increase our competitive advantage by bringing next generation messaging products on Bulgarian market,” Ivan Vassilev, Voicecom’s CTO, said as quoted in a press release.
You can subscribe to our M&A newsletter here
The agreed enterprise value of the transaction is 3.8 million euro ($4.3 million), on a cash-free and debt-free basis and assuming a normalized level of working capital, the press release reads.
Voicecom recorded an adjusted EBITDA of 638,000 euro in 2016. The company’s revenue amounted to 4.4 million euro in 2016.
LINK intends to acquire all shares in Voicecom from the sellers, should an agreement on the terms and conditions of a final share purchase deal be reached, the company said. The acquisition is conditional upon a satisfactory result of a due diligence process to be performed by LINK, it added.
The transaction is expected to be closed in October 2017, according to the press release.
Voicecom, established in 2003, is an SMS and value added voice traffic aggregator. It held a market share of 40% in 2016.
LINK Mobility Group is the largest provider of mobile solutions for businesses in the Nordic market. The company employs around 100 people in Norway, Sweden, Denmark, Latvia and Estonia.
($ = 0.8763 euro)