Aspiro acquires Norwegian Emode
Aspiro today announces that it is to acquire the mobile service provider Emode. Emode, with head office in Norway, sells entertainment services for mobile phones via advertisement in print media. In 2003, Emode’s net sales amounted to approximately NOK 25 million with a profit amounting to approximately NOK 1 million. The acquisition, which is conditional upon the approval of a general meeting of stockholders, is financed with combination of shares and cash payment.
Emode was founded in 2000 and has 10 employees today. The company is offering a variety of mobile entertainment services whereof downloadable ring tones and pictures is the main line of business. The services are offered directly to the end users via advertisement in print media, e.g. evening papers and magazines. The company is supplying services to 5 European markets with main focus on the Swedish and Norwegian markets. In 2003, net sales amounted to approximately NOK 25 million with a profit amounting to approximately NOK 1 million. The company, which has a positive cash flow, has a cash position of approximately NOK 4 million. ”The acquisition of Emode is very good both in a strategic and economic perspective. Through the acquisition, we obtain a strong channel to end-users via the important media channels, evening papers and magazines. We also almost double our net sales,” says Johan Lenander, chairman of the Board in Aspiro. The acquisition will partly be financed by a cash payment of approximately SEK 2,5 million and partly by a non-cash share issue of 5 664 133 new shares, which is equivalent to a cash sum of approximately SEK 19,5 million calculated closing exchange rate Monday February 16. Additional payment, constituting the profit which Emode will generate during 2004, will be paid in cash during the second quarter of 2005. The dilution effect on Aspiro’s share capital will be approximately 18 percent notwithstanding the planned issue of shares that was announced last week. The non-cash share issue is conditional upon the approval of a general meeting of stockholders. An extraordinary general meeting of shareholders is therefore planned to take place on March 11, 2004. The notice to the meeting will be announced no later then February 26, 2004. Closing is planned to take place on March 17, 2004. "By acquiring Emode, Aspiro will achieve a strong market position within all the channels to the end-users; via the telecom operators’ mobile portals, via web sites and now also via print media. We see considerable synergies between these channels, both in the perspective of sales and costs," says Johan Lenander.