DGAP-News: freenet AG / Key word(s): Mergers & Acquisitions freenet AG strengthens Digital Lifestyle activities with acquisition of Jesta Digital Group 16.12.2013 / 18:58 --------------------------------------------------------------------- - Further optimisation of the strategic portfolio through extension of mobile lifestyle applications - Acquisition of all shares in Jesta Digital Group - Financing to be covered by existing credit line Büdelsdorf, 16 December 2013 - freenet Cityline GmbH, a wholly owned subsidiary of freenet AG, today signed a purchase agreement to acquire all shares in Jesta Digital GmbH, Jesta Digital Holdings, Inc. and Jesta Digital Group U.S. Holdings, Inc. The acquisition is subject to the usual regulatory approvals. The transaction is expected to close early in the year 2014. With offices in Berlin and Los Angeles, and around 300 employees, the Jesta Digital Group is a leading global provider of leading-edge digital entertainment content and of services for users of digital applications. Mobile content is sold directly to the end customer, using billing relationships with more than 60 mobile operators worldwide, and supports virtually all major mobile devices. Beyond ringtones and dial tones, the range includes logos, full-track music, mobile games and videos, as well as other fun/lifestyle applications including very popular new offerings such as 'Bitbop', 'iLove' and 'Alta Editions'. The company currently reaches around 100 million customers in more than 50 countries via its own mobile advertising platform, 'Motility Ads'. Jesta Digital generates one-third of its business in Germany, another third in the US, and beyond that is mainly present in other countries such as Italy, Austria, Switzerland and Brazil. 'The continued proliferation of smartphones and tablet PCs, and data-friendly mobile tariffs lead to a dynamically growing demand for mobile digital lifestyle applications,' says Christoph Vilanek, CEO of freenet AG. 'We have successfully cooperated with Jesta Digital for more than ten years now. With the acquisition, we are resolutely continuing our expansionist course in this area.' 'The acquisition meets the conditions defined in our financial policy,' says Joachim Preisig, CFO of freenet AG. 'In addition, it realises in an ideal way the strengthening of particularly valuable revenue contributors, part of our acquisition strategy. The EBITDA multiple for Jesta Digital used for the purposes of the transaction is well below the current Group EBITDA multiple of freenet AG as valued on the stock exchange.' The parties have agreed to keep the purchase price confidential. Once regulatory approval has been obtained, the business activities of the Jesta Digital Group are to be consolidated in the Other/Holding segment as from the completion of the transaction. End of Corporate News --------------------------------------------------------------------- 16.12.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: freenet AG Hollerstraße 126 24782 Büdelsdorf Germany Phone: +49 (0)40 51306-778 Fax: +49 (0)40 51306-970 E-mail: [email protected] Internet: www.freenet-group.de ISIN: DE000A0Z2ZZ5, DE000A1KQXU0 WKN: A0Z2ZZ , A1KQXU Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 245028 16.12.2013