IMO.L Regulatory News (IMO)

16 February 2021

IMImobile PLC

("IMImobile" or the "Company" or the "Group")

Outcome of Strategic Review of VAS and Payments

As previously announced at the Company's interim results on 7 December 2020, the VAS and Payments units have faced operational headwinds, which have been exacerbated by transaction volumes being impacted by the Covid-19 pandemic. The Board further announced that it had decided to conduct a strategic review of the VAS and Payments activities.

The Company has now completed this strategic review and is pleased to announce that it has entered into a conditional agreement to sell the VAS business unit to certain members of the existing management team (the "Disposal") for a total cash consideration of £6.0m (the "Consideration"). £3.0m of the Consideration is to be satisfied within 6 months of completion of the Disposal with the remaining £3.0m payable in full prior to the third anniversary of completion. The Consideration will be used by the Company for general corporate purposes. IMImobile has also taken the decision to wind down the activities of the Payments unit in the UK and US which represents less than 2% of the Group's gross profit.

Having reviewed all the available options, the Board has concluded that a sale of the VAS business unit to the highly experienced management team is in the best long-term interests of our customers and employees of this division.

The Board believe that the disposal of the VAS business unit will not have an impact on the performance or prospects of the Cloud Communications unit.

The activities of the VAS business unit predominantly focus on delivering products which generate additional value-added content services revenue for telecom operators and mobile application development. The business model and target markets are different to that of the Cloud Communications Products unit with significant variations in go-to-market strategy as well as how customers are served. The net book value of the assets subject to the Disposal is approximately £14.0m, and for the financial year ended 31 March 2020 the VAS business unit reported a loss before tax of £1.7m.

The Company will enter into a transitional services agreement following completion to ensure business continuity.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

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About IMImobile PLC

imimobile provides cloud communications software and services that manage business-critical customer interactions at scale.

We believe that customer experience is the key competitive advantage for consumer businesses. So, we're creating a world where enterprises can stay constantly connected to their customers. A world where every touchpoint, on every channel, is an opportunity to deliver rich, engaging, intuitive experiences.

Our Customer Interaction Management (CIM) suite automates, orchestrates and monitors interactions with disparate back-end systems. This saves time and cuts costs for businesses, while seamlessly connecting to customers on the devices they choose. We deliver innovative, on-brand, business-critical customer interactions for blue-chip global enterprises and leading public-sector organizations including AA, Best Buy, BT, Capitec Bank, Centrica, EE, Hermes, IHG, Mercedes, Orange, O2, Vodafone and Walgreens.

imimobile is a global business with offices across the UK, USA, Canada, India, South Africa and UAE. With over 1,100 employees, imimobile is quoted on the London Stock Exchange with the TIDM code IMO.