5th Jan 2009 07:00
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FOR IMMEDIATE RELEASE |
5 January 2009 |
Globo plc
FORMATION OF NEW MOBILE BUSINESS UNIT
and
ACQUISITION
Globo plc ("Globo" or "the Group"; LSE-AIM: GBO; www.globoplc.com), a leader in the Information and Communications Technology market in Greece and a SaaS (Software as a Service) solutions provider, announces that it has formed a new operating business unit, GLOBO Mobile S.A., to deliver its mobile communications strategy. As part of this development, Globo has acquired a 35% equity interest in and full management control of ReachFurther Communications Limited ("ReachFurther"), a Cyprus-based mobile value-added service ("VAS") provider and content aggregator.
GLOBO Mobile will assume responsibility for the commercial launch and development of CitronGO!™, Globo's mobile communication software solution that aims to provide personal and professional users with true, ubiquitous computing on a single screen on any mobile phone or laptop - regardless of manufacturer, vendor or network. Announced in October 2008, CitronGO! is expected to be released to the market in February 2009.
ReachFurther has established a strong position in the Greek market as a VAS provider and aggregator of mobile entertainment and mobile marketing services. Its customers include: Vodafone, Wind and OTE in Greece, as well as Cyta in Cyprus.
Under the terms of the acquisition agreement, Globo has agreed to pay a maximum of €0.65 million for the 35% equity interest. An initial payment of €0.45 million will be paid in cash, with the balance to be satisfied 50% in cash and 50% in cash or new Globo ordinary shares at the discretion of Globo, subject to ReachFurther achieving certain profitability targets in 2009 and 2010. Any new Globo ordinary shares which may become payable under the acquisition agreement will be issued at the mid-market closing price on the day before being issued, subject to a minimum price of 11.5 pence per new ordinary share. Unaudited management accounts indicate that ReachFurther is expected to achieve revenues of approximately €0.5 million and net profits of approximately €0.2 million in 2008. Nikos Giannakakos has been appointed Managing Director of ReachFurther. Mr Giannakakos joined Globo in September 2008, previously having been Group Brand Manager for VAS Marketing in the Commercial Division of Vodafone Greece. ReachFurther's founder, John Sfinias, will remain with the Group for a minimum of two years.
The formation of GLOBO Mobile and the acquisition of control of ReachFurther is expected to contribute significantly to a strengthening of the Group's position in the mobile arena.
CitronGO! seeks to redefine mobility in communication by uniquely integrating onto the screen of a device (mobile handset, PDA, or PC) communication and social networking services, covering personal and professional daily needs. GLOBO Mobile will position itself amongst international players like Google (Android), Apple (MobileMe), Yahoo! (Yahoo!Go) and RIM (Blackberry) in the global arena for ubiquitous computing.
As part of GLOBO Mobile, in addition to the local market initiatives, ReachFurther plans to launch content and mobile marketing services in other geographic markets and sectors. Collaboration between Globo and ReachFurther will enable the Group to use convergent technologies (mobile and fixed line) to extend content delivery, based on existing content supply agreements, to geographic areas outside the local market using the SaaS business model. ReachFurther will offer CitronGO!TM through its own sales and distribution channels with mobile and fixed operators in order to promote a rapid service uptake.
Costis Papadimitrakopoulos, Globo's CEO, commented: "Today, with more than three billion mobile subscriptions globally, the mobile handset is becoming the ultimate personal device of ubiquitous computing. We plan to exploit this market by offering Value Added Services to the mobile arena with the establishment of GLOBO Mobile as a vehicle to deliver our mobile strategy and CitronGO!TM product offering internationally. The mobile sector is expected to become one of the Group's key markets. We see these developments as a natural evolution of our existing activities in the e-Business and SaaS. markets. The collaboration with ReachFurther provides us with a significant footprint in the mobile arena and helps us build upon a successful clientele which spans from mobile network operators to retail customers."
END
CONTACTS
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Globo plc |
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Costis Papadimitrakopoulos, Managing Director |
+30 210-646-6008 |
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Dimitris Gryparis, Finance Director |
+30 210-646-6008 |
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NCB Stockbrokers Limited (Nomad & Joint Broker) |
+44 20-7071-5200 |
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Christopher Caldwell or Jonathan Gray |
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Bankside |
+44 20-7367-8888 |
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Steve Liebmann, Simon Bloomfield or Andy Harris |
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St Helen's Capital Plc (Joint Broker) |
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Ruari McGirr |
+44 20-7628-5582 |
About Globo
GLOBO plc was admitted to AIM in December 2007. Founded in 1997 by Konstantinos Papadimitrakopoulos and headquartered in Halandri (a suburb of Athens), Globo has established itself as one of the market leaders in the Greek ICT market. It provides e-business and telecom software products and related services to the private and governmental sectors in Greece as well as developing and operating broadband wired and wireless networks. It has developed to become one of the largest e-business software and S.a.a.S. vendors in Greece. For further information please go to www.globoplc.com.
Related Shares:
GBO.L