Acquisition

Artilium plc

("Artilium" or the "Company")

 Artilium strengthens its growth potential with the acquisition of Talking Sense Networks bvba ("Talking Sense")

Artilium plc (LSE/AIM: ARTA), the AIM quoted provider of innovative telecommunication software and solutions, is pleased to announce the acquisition, through its subsidiary United Telecom NV ("United Telecom"), of the entire issued share capital of Talking Sense, a Belgian voice over internet protocol ("VoIP") telecom operator (the "Acquisition"). The maximum total consideration for the Acquisition is €750,000, comprising an initial consideration of €80,000, which is being satisfied through the issue of 939,243 new ordinary shares. The additional deferred consideration ("Deferred Consideration"), split over two years, of up to €670,000 is based on certain specific financial performance targets being achieved by Talking Sense in 2016 and 2017 respectively. The Deferred Consideration will be satisfied through the further issue of new ordinary shares by the Company.

Talking Sense is a VoIP telecom operator with a growing B2B customer base. VoIP allows you to make free, or very low cost, telephone calls over an IP data network (or internet) and is growing strongly in the business market. The VoIP services offered by Talking Sense allow customers to conduct very low cost phone calls and offer high levels of flexibility to businesses through its integrated cloud telephony (hosted PBX) solutions. The acquisition of Talking Sense strengthens the market position of the company and allows for the capture of synergies with our recently acquired SpeakUp business.

The Acquisition of Talking Sense will strengthen the Company's position in the strongly growing VoIP segment of the market. With the recently acquired SpeakUp business, this creates another stepping stone in this market. The Acquisition will also provide United Telecom with a larger customer base which, in turn, will enable it to upsell its current products.

In the year ended 31 December 2014, Talking Sense generated unaudited revenues of €67,245, an operating loss of €37,487 and had net assets of €57,092.

Application has been made for the 939,243 new ordinary shares in the Company to be admitted to trading on AIM and admission is expected to take place on 6 July 2015. The new ordinary shares will rank pari passu with the existing ordinary shares of the Company.

Following admission the total number of issued Ordinary Shares in the Company will be 236,744,840 Ordinary Shares. This figure may be used by shareholders of the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to the interest in, the Company under the FSA's Disclosure and Transparency Rules.

Bart Weijermars, Chief Executive Officer of Artilium said:

"With the acquisition of Talking Sense we are adding further growth momentum to our retail business. Our ambition to significantly grow in the business market in the key growth areas of Fixed-Mobile integration and VoIP are bolstered by this."

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About Artilium

Artilium is a demonstrated leader in the development of next generation communication technologies. Artilium's strategy focuses on supporting its customers to successfully grow their business by providing flexible, cost effective and innovative solutions.

Artilium's innovation-driven strategy empowers telecom operators around the globe to face the tremendous challenges ahead. We combine next-generation technology with traditional telecom environments to create exciting new business opportunities for our customers. This ensures that our customers are able to keep up with rapidly evolving market demands while simultaneously growing their businesses. 

ARTA® is the real-time Authentication, Authorization and Accounting (AAA) software that brings a full suite of new functionalities to telecom Operators and virtual Operators. Thanks to ARTA® value-added services portfolio, including for instance AAA of voice, text and data services, VoIP, 3G and 4G compliance, mobile payments and location-based services, our partners are more than ready to meet future customer needs.

Today, multiple renowned national and international telecommunication companies rely on Artilium to deliver voice, text and data services to about 1.5 million end users every day.

Artilium's "Pay-As-You-Grow" model allows us to scale our solutions to the exact needs of our customers. As a latest innovation, Artilium offers its product suite from the Cloud as a PAAS (Platform As A Service), yielding ARTA's scalability, flexibility and proven stability.

Artilium PLC is a publicly listed software company on the London Stock Exchange (LSE/AIM: ARTA).