Irish mobile tech firm zamano announced today that it has completed the acquisition of Eirborne Text Promotions Ltd, an Irish-based mobile content company active in the UK, Irish and Australian markets.
| Zamano Managing Director John O'Shea |
zamano has acquired the entire issued share capital of Eirborne for an initial consideration of €1.7m consisting of an initial cash payment of €1.2m and the issue of 1,136,364 shares in the Company issued at 29.9p / 44c per share. Additional deferred consideration will be paid, based primarily upon a maximum multiple of five times the EBITDA (Earnings before interest, tax, depreciation and amortization) achieved by the business in the 12 months to 31 May 2008, less the initial consideration paid. The total consideration for the purposes of the AIM rules has been capped at €8.5m.
Eirborne’s audited accounts to 31 December 2006 recorded an EBITDA adjusted for one off Director payments of €0.5m on turnover of €2.87 million. As at 31 December 2006, Eirborne had audited total net assets of €0.43m. In the last 6 months of 2006, the business has grown rapidly and it expected to generate an EBITDA significantly in excess of this in 2007.
Eirborne will benefit from being part of zamano’s enlarged network, and as a result, the acquisition is expected to be earnings enhancing in the first full year of ownership.
Eirborne Text Promotions Ltd was established in 2002 by Gerard O’Keeffe and Paul Coyle, two experienced telecommunications executives, each with over 15 years’ relevant industry experience. The vendors will remain with the business for a minimum of 12 months.
Eirborne has developed a range of mobile entertainment services, including music, video, comedy and game content, which it provides to its 100,000 + subscriber base on www.veronicasmoco.com. Eirborne also provides text and picture messaging services for online communities. The company’s market focus is aligned with zamano’s, with presences in the UK, Ireland and Australia.
Eirborne has been an existing customer of zamano’s for nearly three years. Significant synergies have been identified and are a key element in the business plan and the realisation of the deferred consideration payments
Rod Matthews, Chairman of zamano commented: “A key element in zamano’s strategy has been to take advantage of consolidation opportunities within the mobile space. Eirborne will be an excellent addition to zamano, both through top and bottom line improvements, as well as delivering on our stated ambition to enter the web-space with an emphasis on building continuity between the fixed line internet and mobile internet. Eirborne’s brands have demonstrated substantial user growth in the last six months and are firmly established amongst the target youth demographics in the UK, Irish and Australian markets. They are thus highly complimentary to the existing zamano brands”
John O’Shea, zamano’s Managing Director, added: “The acquisition of Eirborne is zamano’s first deal, post listing on AIM and IEX, and will provide zamano with an enhanced web presence and brand propositions which are aligned to our target users in our core geographic markets. The acquisition also marks an important milestone in our strategic development and we will continue to focus on driving growth and investor value through further strategic acquisitions, investment in new technologies and expansion into new territories”.
Gerard O’Keeffe, Director of Eirborne, commented: “We are delighted with this opportunity to extend the reach of our mobile entertainment services via the zamano network. We have worked with the zamano team for a number of years now and we are confident that the two businesses together will create market leading offerings for the mobile community.”