AI Issue 5 2017

6 Acquisition International - May 2017 News: from around the world CLX Acquires Dialogue Group Ltd Our vision is clear; we are building the world’s leading CPaaS company. The acquisition of Dialogue is the next natural step in executing on the strategy we outlined at our IPO in October 2015,” said Johan Hedberg, President, and CEO of CLX Communications. Founded in 1994, Dialogue is one of the leading global mobile messaging and secure communications companies, with a particularly strong Tier 1 network in the Asia-Pacific Region. Through the acquisition, CLX will strengthen its customer base in the UK and Australia and add Tier 1 operator connections in New Zealand, Singapore, Malaysia, Bangladesh, Vietnam, Cambodia, Japan, Philippines, Indonesia, and Egypt. The acquisition will also add Dialogue’s Sentinel Security Solution, a powerful and innovative software solution for mobile operators, to CLX’s existing product portfolio. The Sentinel product will further strengthen CLX’s position as a supplier of fraud and security solutions to mobile operators worldwide. The solution may significantly reduce industry fraud such as global title faking and help operators capture significant revenues that might otherwise be lost. Sentinel, in combination with CLX’s existing security solutions, will constitute one of the most powerful threat detection and prevention toolboxes in the industry today. The market for enterprise cloud-based communications - those between a company’s business-critical applications and its customers or things - is growing rapidly, whether it be text messaging, voice- or video based solutions or the Internet of Things (IOT). The acquisition of Dialogue will bring several benefits: • Speed up CLX’s market entry into key Asia-Pacific countries such as New Zealand, Singapore, Malaysia, Bangladesh, Vietnam, Cambodia, Japan, Philippines, and Indonesia. • Further expand CLX’s Tier One Super Network by adding several mobile operators in predominantly the Asia-Pacific region. • Add innovative security products and functionality to the CLX product portfolio offered to the company’s mobile operator customer base and Tier 1 operator partners. • Expected to yield net synergies of approximately £1 million compared to Dialogue’s rolling 12-month profit. CLX Communications AB (Publ) announces that it has acquired Dialogue Group Ltd., a global provider of mobile messaging and security services. The acquisition of Dialogue will be CLX’s fourth acquisition since the IPO in 2015. Mblox, acquired in 2016, gave CLX a strong position in the US and has yielded significant cost and revenue synergies. Sinch, also acquired in 2016, added leading-edge capabilities in voice and video communications. The acquisition of Xura Secure Communications earlier this year provides CLX with a strong position in Germany, Austria and Switzerland. Price, financing and timetable • CLX is acquiring Dialogue Group Ltd. at a price of £32 million on a cash- and debt free basis. • The purchase price is equivalent to 6.1 x EBITDA, based on EBITDA for the twelve- month period ending February 2017. Net synergies of approximately £1 million are expected for the coming 12 - 18 months. • The purchase price is being paid in cash and CLX has secured financing through a credit facility provided by Svenska Handelsbanken and Danske Bank. • Integration work will start immediately. It is expected to take 12 - 18 months and is targeted to be completed by fall of 2018. To learn more please visit: www. clxcommunications.comPY