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iSentric Limited (ASX:ICU) Proposed Acquisition of Arte Mobile Technology Pte Ltd(ABN Newswire Via Acquire Media NewsEdge) Sydney, Australia, Oct 22, 2014 - (ABN Newswire) - iSentric Limited (ASX:ICU) is pleased to announce that is has signed a term sheet covering the acquisition of Arte Mobile Technology Pte Ltd ("Arte Mobile"), which has exclusive distribution agreements with PT Lingua Asiatic and PT Alpha Media Communications for the distribution of mobile content in Indonesia and an agreement to manage PT Glow Music, (" collectively PT Lingua Group"). PT Lingua Group operates a similar business to iSentric however is based in Indonesia. The proposed acquisition is complementary to iSentric allowing it to deploy its relationships with mobile content suppliers into the Indonesian market and further develop its payments technology with Indonesian Banks. Details of the proposed Transaction The proposed acquisition will be funded by a combination of shares and cash, which is yet to be finalised. The financial aspects of transaction are as follows: 1. Arte Mobile is expected to generate NPAT for the financial year ended 2015 ("FYE2015") in excess of $A2.2M; and 2. The proposed acquisition will be based on a multiple of the NPAT for FYE2015, with a cap on the consideration of $A18M. The transaction is subject to due diligence, receipt of all regulatory approvals including a shareholder meeting to approve the proposed transaction. Background on PT Lingua Group PT Lingua Group is a mobile value added service provider specialising in mobile entertainment and mobile solutions. The Group offers diverse and popular locally produced mobile content to suit the market in Indonesia. The Group is connected to 3 major telecommunication companies in Indonesia, namely Telkomsel, Indosat and XL (in which PT Lingua Group are ranked in the top tier in terms of revenue). Being connected to these 3 major telecommunication providers which dominate over 90% of Indonesian mobile market, PT Lingua Group has access to over 255 million mobile subscribers. PT Lingua Group operates in the mobile value added service industry through three main divisions: 1) Mobile Content and Services - Locally produced mobile content including videos, text quotes, games, photos and voices delivered as Ring-back-tone (RBT); 2) Celebrity Music and Content - Produced music and celebrities' related content delivered in various formats such as smartphone apps, personal/behind-the-scene videos, photos, latest gossips/updates via text, full track music downloads, CD Album, music and voice as Ring-back-tone (RBT). 3) Content Aggregation and Digital Payment - through its MobilePRO content aggregation and billing platform, PT Lingua Group has enabled several partners including Newscorp's Ballball soccer contents to deliver their content to mobile subscribers with payment collected through subscriber's airtime credit. Conclusion Managing Director of iSentric, Aaron Lee said that the proposed transaction meets all the key acquisition criteria of the company. It will expand the geographic footprint of iSentric into Indonesia whilst leveraging existing relationships and technology. PT Lingua Group has a competitive advantage in its market, which is significantly larger that the Company's existing markets, with an experienced and committed management team capable of maintaining growth. With a large customer base which is continuing to grow the proposed acquisition is expected to be substantially EPS accretive to iSentric. About iSentric Ltd: iSentric Ltd (ASX:ICU), formerly OMI Holdings Limited, is an Australia-based medical device supplier. During the fiscal year ended June 30, 2012, the Company was engaged in the development and marketing of safety engineered medical devices used in the medical industry. The Company's wholly owned subsidiary companies consist of Jireh Tech Pty Ltd, OMI Properties Pty Ltd and OMI Inc. In September 2014, Donaco International Limited announced that it has completed the sale agreement with the Company, with Donaco International Limited selling 100% of its interest in iSentric Sdn Bhd to the Company. Contact: Gary Stewart Company Secretary Phone (02) 9538 0802 Copyright (C) 2014 ABN Newswire. All rights reserved. |