Communicators

Crowd Mobile expands globally in high growth m-Payments

ï‚·         Crowd Mobile has entered into a Heads of Agreement (HOA) to acquire Netherlands based company Track Concepts

ï‚·         Track Concepts has a high value m-Payments network and industry leading technology platform

ï‚·         Acquisition expands Crowd Mobile’s global footprint – Track Concepts operates in 38 countries across more than 140 mobile carriers

ï‚·         Track Concepts generated revenue of AUD$24.5m (€17.2m) and EBITDA of AUD$13m (€9m) in CY2014

Crowd Mobile Limited (ASX: CM8 / FWB-XETRA: CM3) (Crowd Mobile) 10 June 2015

is pleased to announce that it has entered into a Heads of Agreement (HOA) with Netherlands based company Track Holdings BV (Track Concepts), to acquire 100% of its shares for AUD $26.7m (€18.7m) plus Net Tangible Assets (NTA) expected to be circa AUD$5m (€3.5m) plus an earn-out to a maximum of AUD$6.7m (€4.7m).

The transaction is subject to Due Diligence, Execution of a Share Purchase Agreement (SPA) and Funding. It is expected that the transaction will be funded by a combination of equity, debt and convertible note and it’s expected to be completed by August 2015.

Track Concepts owns specialist technologies in m-Payments and an industry leading customer acquisition platform.  Its global content distribution network operates in 38 countries within Europe, Central/Latin America, Asia-Pacific and Africa and has connections with over 140 mobile carriers.

Commenting on the agreement, Crowd Mobile Chief Executive Officer Domenic Carosa said:

“This is a game changing acquisition for Crowd Mobile. The strategic benefits we see from the transaction are significant.”

“This is a unique opportunity to bring together Track Concept’s high value m-Payments network with Crowd Mobile’s existing m-Payments network to create one of the leading global platforms in the high growth mobile payments industry. This acquisition will see Crowd Mobile add a network that connects over 140 telecommunication companies globally providing secure and seamless electronic m-Payment transactions for customers.”

“In addition to m-Payments, Track Concepts also has an industry leading technology platform that acquires, retains and manages customers. Its Global Content Distribution provides mobile content, entertainment and apps to millions of consumers worldwide.”

“The acquisition provides access to new territories and products in high value verticals for Crowd Mobile. We are also excited about the new suite of content and mobile technologies to complement our current offering.”

Further information is contained in the CM8 Track Concepts Investor Deck.

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For further information please contact:

Domenic Carosa

Chief Executive Officer

M: +61 411 19 69 79

E: dom@crowdmobile.com

Kate Wood             

Investor relations, Market Eye             

M: +61 438 680 628

E: kate.wood@marketeye.com.au

About Track Concepts

Track Concepts is a leading international mobile content and entertainment m-Payment provider with exposure to over 1.4 billion consumers worldwide. Track Concepts provides content and entertainment for mobile phones in more than 38 countries. Track Concepts is present through the infrastructure of the mobile operators in all continents, with key markets in Europe and Latin America.

EY Transaction Advisory Services provided lead advisory services to Track Concepts. The deal team was led by Kees Slump and supported by Ron van Oeveren and Lauren van Dijk.

About Crowd Mobile

Crowd Mobile is a global m-Payments, mobile entertainment and micro job network that allows customers globally to crowd source answers to their much-needed questions and pay a small fee for each answer received. Crowd Mobile operates in Australia, NZ, UK, Ireland, France, Germany, Austria, Belgium, Portugal, Spain, The Netherlands, Switzerland, Italy, Poland, Norway and Turkey across over 10 languages. Crowd Mobile answered more than 3.4 million questions in FY14.