TIG Team Internet Group Plc

29 April 2024

 Team Internet Group plc

("Team Internet" or "TIG" or "the "Company", or the "Group")

Completion of Acquisition of Shinez I.O. Ltd

Team Internet Group plc (AIM: TIG, OTCQX: TIGXF) is pleased to announce that, further to the announcement released on 19 March 2024, the acquisition of Shinez I.O Ltd ("Shinez"), is now complete.

Shinez has been acquired for an enterprise value of USD 43.2 million, inclusive of customary adjustments for cash and working capital with an initial consideration of USD 38.9 million and USD 4.3 million retained in escrow to cover for customary warranties and indemnification.

Contingent additional consideration of up to USD 12.3 million may become due subject to Shinez achieving ambitious financial targets over the next two years, payable in cash.

Pro Forma Impact

Shinez reported USD 111 million in gross revenue, USD 16.2 million in net revenue and USD 10.4 million in Adjusted EBITDA for the year ending 31 December 2023. Following the acquisition, the enlarged Group's unaudited pro forma financials for 2023 indicate an estimated gross revenue, net revenue and Adjusted EBITDA of approximately USD 948 million, USD 207 million and USD 107 million, respectively. Moreover, this acquisition is expected to significantly enhance earnings per share (EPS), with a forecasted adjusted EPS growth in the high single-digit percentage range for the pro forma fiscal year 2023, not accounting for potential synergies.

CEO's Perspective

Michael Riedl, CEO of Team Internet, commented: "We are excited to announce the swift completion of the Shinez acquisition, marking a significant step in our growth strategy. With Shinez joining Team Internet, we now have a robust platform addressing the 'Awareness' stage of the advertising funnel, complementing our existing offerings, TONIC and VGL, which focus on 'Consideration' and 'Conversion', respectively.

This acquisition aligns with our broader vision to provide comprehensive online marketing solutions across the entire customer journey. We are focused on leveraging the strengths of Shinez to drive new growth opportunities and expand our revenue streams. The integration of Shinez into our operations will enable us to offer a more holistic service to our clients, facilitating strategic cross-selling between Shinez's and TONIC's publisher bases, while also deepening our vertical integration with major networks like Meta.

Our immediate priority is to ensure a smooth integration process, enabling us to deliver even greater value to our partners and stakeholders. We are confident that this strategic move will enhance our competitive edge and open new pathways for innovation and collaboration.

We welcome Shinez to Team Internet. Together we will shine!"

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About Team Internet Group plc

Team Internet (AIM: TIG) creates meaningful and successful connections from businesses to domains, brands to consumers, publishers to advertisers, enabling everyone to realise their digital ambitions. The Company is a leading global internet solutions company that operates in two highly attractive markets: high-growth digital advertising (Online Marketing segment) and domain name management solutions (Online Presence segment). The Company's Online Marketing segment creates privacy-safe and AI-generated online consumer journeys that convert general interest online media users into confident high conviction consumers through advertorial and review websites. The Online Presence segment is a critical constituent of the global online presence and productivity tool ecosystem, where the Company serves as the primary distribution channel for a wide range of digital products. The Company's high-quality earnings come from subscription recurring revenues in the Online Presence segment and revenue share on rolling utility-style contracts in the Online Marketing segment. For more information please visit: www.teaminternet.com