Australian Radio Network (ARN) owner HT&E will receive $149 million for its 25% in messaging software group Soprano when it is sold to Oslo stock exchange listed Link Mobility Group.
The transaction will create a global, market leading CPaaS (platform as a service solutions) player with complementary geographic and client coverage, best-in-class products and technology and the potential for material revenue and cost synergies.
The deal will give HT&E, which has emerged financially fit from the pandemic, access to more resources to fund potential acquisitions. At last report the company has no debt and $112 million in net cash, with a strategy focusing on strengthening core radio operations at ARN and investing in digital audio growth.
The proposal sees the Norwegian company, one of Europe's leading providers of mobile messaging, acquiring 100% of Soprano for NOK 3,590 million, about AUD 560 million, through a combination of cash and equity.
The agreement values HT&E’s stake at AUD 139 million. HT&E would receive AUD 6.2 million cash upfront and shares representing about 6.15% in the combined Link/ Soprano business.
Soprano will also make a pre-transaction dividend payment of up to AUD 40 million of which HT&E would get AUD 10 million.
The parties are now doing due diligence and may then enter into a binding share purchase agreement around July 1. HT&E says there is no certainty the deal will close.
HT&E: "We believe this delivers shareholders an attractive return on investment and the future potential to provide further balance sheet strength and optionality for HT&E."
The other 75% of Soprano is owned by its founder, Dr Richard Favero.
"LINK and Soprano are a wonderful combination for our customers and partners," says Favero.
"The extended and non-overlapping geographical reach, wider product set, broader expertise and an ever-expanding team of seasoned professionals will lead to an ever-expanding CPaaS capability."
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