brand-new DESIRE, Pa.–( BUSINESSES CABLE )–MeetMe, Inc. (NASDAQ: MEET), a general public market frontrunner for personal knowledge, today revealed this has accomplished a conclusive agreement to obtain Skout, a prominent worldwide cellular community for fulfilling new people, for $28.5 million in funds and more or less 5.37 million typical offers of MeetMe, implying an enterprise value of $54.6 million according to MeetMe’s shutting inventory price on Summer 24, 2016. This exchange encourages MeetMe and Skout’s contributed plans to produce the greatest international services for meeting and communicating with new-people. The purchase is anticipated to supply greater scale for monetization and increased profitability for all the merged business.

Skout try a number one mobile software for encounter new people with:

Essential features from the forecast scale regarding the latest combined business consist of:

• Smartphone MAU of 8.5 million, an increase of 69% from MeetMe’s 5.0 million in-may 2016;
• Mobile every day active people (DAU) of 2.1 million, an increase of 73per cent from MeetMe’s 1.24 million in-may 2016;
• Chats sent everyday of 57.2 million, an increase of 96percent from MeetMe’s 29.2 million average in June 2016;
• Smartphone new users daily of 107,000, a growth of 65% from MeetMe’s 65,000 per day typical in 2016.

Investment effects of purchase:

• Likely to create significantly increasing level in individual base and revenue, and display stronger functioning power.
• Assuming a prospective closing go out of October 1, 2016, MeetMe would anticipate their 2016 economic brings about end up being income of between $70.5 and $73.5 million and Adjusted EBITDA of between $26.0 and $29.0 million.
• Expect Skout to contribute around $7.5 million of Adjusted EBITDA and start to become accretive to earnings in the 1st 12 months post-closing.

Geoff Cook, Chief Executive Officer of MeetMe, said, “We think this collection supplies a path to $100 million in income in 2018 with modified EBITDA margins drawing near to 45 percentage. I am happy to carry a couple of biggest mobile applications for meeting and chatting with new-people in to the same portfolio. Skout most likely the earliest mobile personal knowledge providers. I’ve known and monitored the company for more than eight ages. We share just the exact same plans but most same secret wedding metrics, including around the exact same wide range of chats per consumer everyday, also a familiar advertising-driven enterprize model. I Will Be thrilled from the possibility to function directly along with their talented staff to accelerate progress and engagement across both programs all over the world.”

“What’s considerably,” prepare continuous, “this statement arrives during a time period of powerful gains for MeetMe, with might cellular DAU of 1.24 million, right up 8% versus the Q1 average, and May cellular MAU surpassing 5.0 million for the first time in a 30 days, or more 14percent versus the Q1 medium. We Think this exchange will further develop on this impetus, significantly increasing all of our level, and enabling continued progress to your referral system, talk, and Examine, for an even greater influence and reach further people.”

We expect that Skout will continue to be a different brand name and separate cellular software pursuing the closure regarding the acquisition and its own head office will remain in bay area, CA, and we also bring expanded features of occupations to their approximately 30 staff. Likewise, Skout’s founders Christian Wiklund and Niklas Lindstrom have actually approved benefit the change for just one 12 months following completion.

As research indicates that people of social finding applications often utilize more than one simultaneously, and offered MeetMe and Skout express lower than 5per cent overlap among their month-to-month effective consumer base, we believe there can be a definite cross-promotional perks between apps. The geographic blend can also be complementary: while Skout’s largest nation, like MeetMe’s, is the united states of america, Skout is finished 80per cent worldwide and skews considerably toward Asia, where MeetMe possess usually got small presence. MeetMe promises to increase the monetization of its international audience considering Skout’s profitable background on these marketplaces.

David Clark, fundamental Financial Officer of MeetMe, extra, “We count on the purchase to close in October within this year and to end up being accretive to earnings and also to establish further free cash flow for MeetMe in the first one year adopting the finishing and past. With time, we think that through additional synergies from incorporating our very own technologies networks, enhancing all of our monetization system, cross-promoting to each and every consumer base, and accelerating MeetMe’s intercontinental monetization, we could generate extra value using this purchase.”

The firm wants to invest in the cash portion of the exchange largely from MeetMe cash on give and money from surgery, and possibly from other sourced elements of financing open to MeetMe.

Canaccord Genuity try offering as monetary expert and Morgan, Lewis & Bockius LLP is actually offering as lawyer to MeetMe.

MeetMe Chairman John C. Abbott revealed his resignation, efficient straight away, to spotlight their business hobbies in Mexico and Brazil. “Im excited observe Skout join the MeetMe collection,” Abbott stated. “We have been tracking Skout for many years and are also thrilled by measure and size produced by this mixing. Combining two of the largest mobile apps for fulfilling new people is exactly aimed aided by the Company’s long lasting strategy to build a global commander in mobile social discovery. With a good teams set up, I Am Aware the organization is in exceptional fingers, experiencing stronger growth and with bright customers before they.”

Leaving comments on Abbott’s resignation, prepare stated, “John’s earliest vision of a community market commander for personal development is something we plan to still execute against with single focus, and I am grateful for his many contributions to MeetMe over the last escort Minneapolis nine ages.”

Webcast and Discussion Call Details

Control will hold a webcast and convention call on Tuesday, June 28, 2016 at 8:30 a.m. Eastern time for you talk about the purchase. To get into the call control 888-481-2877 (+1 719-325-2393 away from United States) so when motivated offer the person passcode 7649062 for the operator. And also, a webcast of the convention call is offered go on the buyer Relations portion of the Company’s site at www.meetmecorp.com and a replay regarding the webcast shall be readily available for 90 days.

About MeetMe

MeetMe® is the leading social media for encounter new people in america in addition to general public industry commander for personal discovery (NASDAQ: MEET). MeetMe allows you to realize new people to have a chat with on cellular devices. With approximately 90 percentage of website traffic coming from mobile and more than a million total daily active users, MeetMe is quick getting the social event location for the mobile generation. MeetMe are a leader in mobile monetization with a diverse sales design comprising marketing, indigenous marketing, digital money, and registration. MeetMe software are available on iPhone, apple ipad, and Android os in multiple languages, such as English, Spanish, Portuguese, French, Italian, German, Chinese (conventional and Simplified), Russian, Japanese, Dutch, Turkish, Korean, Hindi, Bengali and Vietnamese. To learn more, kindly visit meetmecorp.com.

About Skout

Regulation G – Non-GAAP Economic Procedures