Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications
Dada: agreement for the acquisition of Upoc Networks Inc., one of the most experienced player in the US Internet and mobile value added services market
The acquisition of Upoc, aimed at strengthening Dada’s leadership in the US web and mobile entertainment and community services market, will be executed by Dada Mobile Inc., a subsidiary of Dada S.p.A. and one of the main players in the American VAS consumer market.
Milan, August 5, 2006 – Dada Mobile Inc., a subsidiary of Dada S.p.A. (MTAX of the Italian Stock Exchange: DA.MI) based in New York and one of the main players operating in the US web and mobile entertainment and community services market, has today formalised the agreement for the acquisition of Upoc Networks Inc. – one of the most experienced players in the American Internet and mobile added value services market.
Founded in 1999 its headquarters in New York, Upoc operates in the field of consumer entertainment and community services, accessible via SMS, WAP, voice, MMS, BREW and Java distributed both directly through its brand upoc.com and through the on-deck presence on some of the main American carriers’ Wap portals. Upoc is also active in the online marketing solutions for leading American media groups and carriers.
Upoc today has approximately 3 million registered users, sends 2 million SMS messages per day and grows at almost 50 thousand new subscribers monthly - the majority of which from WAP services; the company currently employs 34 professionals, with real experience in the field of technology.
In line with Dada’s international strategy in which the USA is identified as the main foreign market both in terms of sales and customer base. The acquisition of Upoc will enable the Group to benefit from some strategic assets – such as the direct contracts between Upoc and the major US mobile carriers, a wide and consolidated consumer base and a organisational structure with a highly skilled professionals - which could accelerate its expansion in the American consumer entertainment and community services market.
The acquisition of Upoc by Dada Mobile Inc. will be for a total cash consideration of $7 million US (equal to approx. 5.5 million Euro) deriving from the liquidity of the Group and to be paid in one single instalment on the transfer of the shares representing more than 90% of the ordinary capital, while the remaining part of the capital will be transferred thereafter. The closing of the transaction, currently expected for the second half of August 2006, will be executed in particular pursuant to the acknowledgment by some of the carriers of the change in control of the company.
It is noted that the previous forecasts communicated by Dada to the financial community did not take into account the impact of any acquisitions and that any relevant impact of the present transaction on the guidance will be communicated where necessary.
