Bulgarian mobile services provider Allterco has entered into an agreement with LINK Mobility Group to sell its stake in her five subsidiaries Teravoice, Tera Communications, and Allterpay, which are based in Bulgaria, Teracomm RO based in Romania and Tera Communications DOOEL in Macedonia. The company is finalizing the sale process that started last year.
The company will sell its shares and units to LINK Mobility for the indicative price of €7.9 M which will be calculated on a cash free/debt free basis. The price equals the annual adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of the five companies multiplied by 5.5. Тhe payout will be divided into three parts, 60% will be a bank transfer at the end of the deal, 20% will be in post-payment maturing two years after the date of completion of the sale and another 20% by transfer of rights to purchase shares of the capital of Victory Partners VIII Norway Holding AS, sole shareholder of the LINK Mobility Group AS.
Allterco AD is a mobile services provider, operating in the European, Asian and American markets. Its services include short messaging (SMS), mobile notifications and mobile messaging solutions for commercial companies, mobile operators, advertising and media agencies, companies offering mobile payments, banks, financial institutions, etc. Allterco has more than 90 employees and offices all over the world including Bulgaria, Romania, Macedonia, Serbia, Kosovo, Hungary, Germany, Singapore, and USA. In 2015 the company releases its newest products MyKi Watch for kids, MyKi Pet tracker for pets and two home automation systems She and Shelly. In 2018 Allterco’s consolidated profit grew by 5% on annual basis to BGN 2.83 M (ca. €1.45 M), sales grew by 12.8% to BGN 44.85 M (ca. €22.93 M) and sales of goods like MyKi and Shelly increased by 48%. In line with the strong sales of the company, prices of Allterco’s shares also rose to 36% in the last 12 months amounting to BGN 2.6 (ca. €1.33) per share, reaching a record stock price of BGN 2.66 (ca. €1.36) in March 2019.
LINK Mobility Group is a Norway-based provider of mobile communications specializing in messaging, digital services and intelligent data usage. The company has more than 24 offices across 16 countries including Hungary, Poland, UK, France, and Italy. The acquisition of Allterco’s shares is the second for Link Mobility in the region and with the deal, the company plans to continue its growth by actively entering into the telecommunications services market in Southeastern Europe.