Oslo, Norway, 7 November 2023 at 04:30 CET. LINK has today entered into a
definitive agreement to divest Message Broadcast to a U.S. based private equity
firm (the Buyer). Message Broadcast is divested at an enterprise value of USD
260 million (EUR 243 million), including an earnout of up to USD 30 million,
implying a LTM Q3 23 EV / EBITDA multiple of 14.1x. The transaction offers
immediate value creation being significantly accretive to LINK's current LTM Q3
23 EV / adjusted EBITDA multiple of 8.9x. It also substantially deleverages the
group, reducing leverage as measured by net debt / adjusted EBITDA from 4.0x
currently to 1.0x post transaction. Cash on balance sheet post transaction will
increase to NOK 3.5 billion.

Message Broadcast mainly serves large US utilities and has two revenue streams,
messaging solutions and critical events messaging, the latter being weather
dependent with a large degree of revenue variability. After an extensive
strategic review and following a bid from the Buyer, LINK has concluded
divesting Message Broadcast is an attractive path to maximize shareholder value.
Message Broadcast operates in the highly regulated US utilities industry, a
niche business with different customer needs compared to LINK's broad enterprise
digital messaging business. The divestiture enhances earnings predictability for
LINK with stable organic gross profit growth in a transparent European business
supported by a strong contract backlog. The transaction creates a new capital
structure to fast-track accretive M&A consistent with LINK's proven track record
for inorganic growth over the last decade. LINK's global ambitions remain
unchanged and the US market a priority. 

"We are happy to reach a purchase agreement for Message Broadcast at a highly
attractive valuation in a challenging capital market. LINK's new balance sheet
reopens sizeable M&A discussions from a diverse pipeline with accretive target
multiples. LINK sees significant scope for inorganic EBITDA value creation
through multiple arbitrage use of proceeds retaining leverage well below 3.5x
adjusted EBITDA", says André Christensen, Chairperson of the Board.

The transaction will be settled with USD 220 million in cash at close, a USD 10
million seller note with a cash interest of 5% p.a. maturing in the summer of
2025 and a USD 30 million cash earnout based on Message Broadcast's 2024
performance. The earnout is linear from USD 7.5 million and increasing with
revenue growth. The starting point reflects modest growth expectations, whilst
the end point requires growth in-line with historic performance for Message
Broadcast.

The agreement is subject to customary closing conditions and expected to close
early next year. The transaction will result in a NOK book gain reflecting a
favorable USDNOK development. 


For further information, please contact 

André Christensen, Chairperson of the Board
+1-408-893-8409
andre@christensen.ac

Thomas Berge, CEO 
+47 41 31 90 28 
thomas.berge@linkmobility.com

Tom Rogn, VP Investor Relations 
+47 94 85 56 59 
tom.rogn@linkmobility.com


About LINK Mobility 

LINK is an award-winning, leading global provider of mobile messaging and
communications platform as a service (CPaaS) solutions for increased engagement.
The company serves enterprise, SME, and government customers. LINK offers a wide
range of innovative and scalable mobile solutions, creating valuable digital
convergence between businesses and customers, governments and citizens,
platforms and users. LINK has 50 thousand customer accounts globally and
exchanges more than 18 billion messages a year. LINK is listed on the Oslo Stock
Exchange under the ticker LINK. For more information about LINK, please see
www.linkmobility.com and follow LINK Mobility on LinkedIn.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. The stock exchange
announcement was published by Tom Rogn, VP Investor Relations, LINK Mobility
Group Holding ASA, at the date and time as set out above.