LINK Mobility acquires WebSMS in Austria

Oslo, 16 November 2020: LINK Mobility Group Holding ASA ("LINK Mobility" or the "Company", and together with its subsidiaries the "Group" or "LINK"), one of Europe's leading providers of mobile messaging and CPaaS solutions, has today entered into a definitive agreement and completed the acquisition of the Austrian CPaaS companies ATMS and SMS.AT, including the WebSMS brands (together "WebSMS").

WebSMS was established in 1999 in Austria, today headquartered in Graz, Austria. WebSMS holds an MNO license in Austria, and is considered the local market leader, with more than 5,000 enterprise clients. WebSMS also has significant business in Germany and Switzerland.

As described in the Company's prospectus dated 12 October 2020 (the "Prospectus"), M&A remains a key component of the Group's growth strategy by expanding internationally and strengthening its CPaaS capabilities through a three-pillar approach: (i) add-ons, i.e. tuck-in acquisitions to further strengthen local presence and position as a market leader ; (ii) level-up, i.e. acquiring platform companies to penetrate and build market positions in new territories and (iii) solutions, i.e. seeking new and innovative solutions to leverage the existing footprint and further differentiate the Group's product offering. As further described in the Prospectus, the Group is actively exploring near term acquisition opportunities and once an acquisition target is identified, subject to market conditions and the complexity of the transaction, the Group is capable of closing the M&A transaction in less than 60 days.

"I'm very happy to announce our first acquisition as a listed company, and a further consolidation of our European market leader position with the add-on acquisition of WebSMS in Austria. WebSMS is a great example of a mobile messaging company transitioning into a CPaaS player with new connections, including: WhatsApp and RCS. WebSMS has a strong mix of the biggest enterprise clients as well as a long tail of small and medium sized business using their CPaaS offering", says Guillaume Van Gaver, CEO of LINK Mobility.

"LINK Mobility and WebSMS complement each other perfectly. For our clients this will bring new opportunities to engage with their end customers at the most important touchpoint - the mobile screen. Also, we are looking forward to further optimize our international connectivity. My team and I are excited to join the LINK Mobility family and are looking forward to contributing to LINK Mobility's growth pillars", says Mr. Christian C Waldheim, CEO of WebSMS.

For the twelve months ended 30 June 2020, WebSMS recorded revenues of EUR 15.4 million, gross profit of EUR 6.8 million and adjusted and normalized EBITDA of EUR 5.1 million. The business employs 24 people in Austria, headquartered in Graz. On a preliminary basis, LINK Mobility expects synergies to reach EUR 0.6 million on a full run rate in the fiscal year of 2021. The transaction values WebSMS at an EV/EBITDA multiple of 10.5x or 9.4x including estimated synergies at full run rate. LINK Mobility, or a subsidiary of LINK Mobility, will acquire 100% of the shares in Bamberger Invest Alpha GmbH and BK Invest GmbH and, indirectly, 100% of the shares in atms Telefon- und Marketing Services GmbH and "sms.at" mobile internet services GmbH, from Mr. Christian Bamberger, SK Capital GmbH, Foxyflo GmbH, Mr. Christian Waldheim and Mr. Martin Mrvka.

The purchase price for WebSMS of EUR 50.9 million, reflecting an enterprise value of EUR 53.7 million on a cash-free and debt-free basis and assuming a normalized level of working capital, has been settled with 60% paid in cash and the remaining 30% in 3,512,299 new shares issued in LINK Mobility at a price of NOK 47.00 per share, equal to the offer price in the Company's initial public offering which was used as the reference price in the negotiations between the parties (the "Consideration Shares"). The Consideration Shares are subject to lock-up until 21 April 2020. 10% of the purchase price will be held in escrow until 1 March 2022 as security for claims the Company may have against the sellers. The cash portion of the purchase price has been financed using available cash at hand.

The Consideration Shares issued in connection with the transaction have been issued by the Company under a carve-out from the Company's lock-up undertakings as described in the Prospectus.

AGP Advokater AS has acted as legal advisors and EY Law and EY Austria have acted as legal, financial and TAX advisors to LINK Mobility. BDO Austria and Schoenherr have acted as financial and legal advisors for the sellers of WebSMS.

For further information, please contact:

Guillaume Van Gaver, CEO +33 6 32 25 91 25 Email: guillaume.vangaver@linkmobility.com Email: press@linkmobility.com

About LINK Mobility

LINK Mobility is one of Europe's leading providers of mobile messaging and CPaaS solutions, based on volume of messages, for customer engagement serving enterprise, SME and government customers. LINK offers a wide range of innovative and scalable mobile solutions, creating valuable digital convergence between businesses and customers, platforms and users. As of 30 June 2020, the Group had more than 33,000 customer accounts across Europe and in 2019, LINK exchanged 9.5 billion messages. LINK Mobility is listed on the Oslo Stock Exchange with ticker "LINK". For more information about LINK, see www.linkmobility.com.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.