Zamano To Buy Red Circle For Up To 24.4 Million Euros

Dublin-based Zamano has announced it has conditionally agreed to buy the entire issued share capital of mobile content company Red Circle for up to 24.4 million euros, reports FinFacts. The deal (classified as a reverse takeover because of the size of Red Circle relative to Zamano) consists of a 17.2 million euro payment up front with up to 7.2 million euros more based on Red Circle’s EBITDA for the three months ending Dec 31, 2007 (the full payment will require an annual EBITDA of 3.9 million euros or more). The amounts will be paid as 75 percent cash and 25 percent Zamano shares. Red Circle has 500,000 subscribers and operates in the UK, Ireland and Australia, had revenues of 31.1 million euros for the year ending 31 May 2007, with EBITDA of 3.5 million euros and profit after tax of 3.3 million euros. If the acquisition is approved the shares of both companies (Zamano on the AIM and Red Circle on the IEX) will be cancelled and the company will apply for its enlarged share capital to be re-admitted to trading on both exchanges.

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