mynth
01/2018

TOTALCONNECT acquired by LINK MOBILITY

ITALY Software / MarTech EV 0M - 15M EUR

Context

LINK Mobility Group ASA has completed the 100% acquisition of the share capital of Archynet s.r.l., known as "Total Connect." The acquisition was conducted on a cash-free, debt-free basis, effectively integrating the Italian mobile messaging business into the Group's existing portfolio. The acquisition is strategically aligned with LINK Mobility’s ongoing consolidation strategy within the European mobile communications market. By acquiring Total Connect, LINK Mobility deepens its footprint in the Italian region, gaining immediate access to the target's existing customer base and messaging infrastructure. The deal enables the acquirer to leverage economies of scale and cross-selling opportunities, integrating Total Connect’s local technical capabilities into the broader Group platform to enhance the overall messaging service offering for enterprise clients.

TOTALCONNECT, which reported an EBITDA margin of in 2017, is valued in this transaction at an EV/EBITDA multiple of , a level than the average currently observed in the TMT (Tech, Media, Telecom) sector (15.3x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Archynet s.r.l., commercially operating under the brand Total Connect, is an Italian specialist in the mobile messaging sector. Headquartered in Italy, the firm provides robust mobile communication solutions tailored to enterprises seeking to enhance their customer engagement and digital outreach. As a challenger in the regional telecommunications and digital marketing arena, Total Connect has carved out a unique positioning by offering reliable, scalable SMS and mobile messaging platforms. The business model relies on delivering high-volume messaging capabilities that enable brands to connect directly with their consumer base, thereby supporting CRM and marketing initiatives. Operating within a highly fragmented market, the firm exhibits strong fundamentals driven by the increasing need for digital convergence and direct-to-consumer communication channels. From a strategic standpoint, Total Connect represents a highly attractive platform for market consolidation, given its established local footprint and loyal client base.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2017
2016

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REFERENCES

Valuation range: EV 0M - 15M EUR

EBITDA range: 0M - 5M EUR

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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Acquirer: link mobility