Otello settles BeMobi earnout
Otello has today reached a final agreement with the BeMobi Earnout Participants (“EPs”), where the existing BeMobi earnout is terminated, and a significant part of the future earn-out to the EPs is converted into the right of the EPs to receive ownership in BeMobi.
As of 31.03.2018 Otello estimated future earnout payments of USD 56.9 million related to BeMobi and with a maximum payment capped at USD 67.5 million payable through April 2020. Based on achievement in 2H2017 and payment made in 2Q18 prior to this agreement of $11.8 million, a total of USD 45.1 to 55.7 million of future earn-out payments remained post this payment.
A total of USD 20 million will be paid to the EPs with USD 10 million paid on the effective date (today), and USD 10 million paid on October 1, 2018. The remaining earn-out is converted into the right to ownership of BeMobi giving the EPs a total ownership of 11.2%.
With the successful completion of this transaction Otello has:
- Secured alignment of Otello and the EPs today and also beyond the original earn-out period
- Ensured that Otello and EPs will together evaluate how best to maximize the value of the BeMobi stock
- Paved the road for an even faster global rollout of the BeMobi products through new and existing partnerships with Operators and others
- Further Improved Otello’s net cash position
«We are very happy to announce that Pedro Ripper and his co-investors have converted their earn-out into ownership in BeMobi, ensuring our interests are aligned. This strategic move enables both Otello and its shareholders, as well as the earnout participants, to benefit from the value creation going forward,” said Lars Boilesen, CEO Otello.
«This is a significant step forward for Bemobi, and we are very excited to move from a shorter term earn-out structure to become longer-term shareholders as the future for BeMobi has never looked more promising. We strongly believe in the business, including the global expansion that is underway. As joint shareholders, BeMobi and Otello, will accelerate the pace of innovation and growth as we together take Bemobi to new levels,” said Pedro Ripper, CEO BeMobi.
Otello is reporting its 1Q18 numbers on 31. May @ 08:00 CET in Oslo, Norway and will at that point provide more details and future prospects to be presented by BeMobi CEO, Pedro Ripper.
Petter Lade, CFO
Phone: +47 91143878
E-mail: petterl@otellocorp.com
About Otello: Otello holds shares in several different businesses, including (i)AdColony which helps publishers monetize their content through advertising and advertisers reach the audiences that build value for their businesses, capitalizing on a global consumer audience reach that exceeds 2 billion; (ii) Bemobi, a Mobile Media and Entertainment company which integrate people and mobile content through technology and offers a leading subscription-based discovery service for mobile apps in Latin America and beyond; (iii) Skyfire which offers cloud-based network solutions for mobile operators and (iv) Vewd which offers OTT services in the Connected TV space.