Ann: Mobile Embrace Acquires Eggmobi, page-18

Update from Lincoln:

"Mobile payments and marketing services provider Mobile Embrace Limited (MBE) has announced the acquisition of online and mobile marketing business Eggmobi Pty Ltd. Total consideration for the acquisition is $1.4 million, with additional earn out payments contingent on performance. Eggmobi Pty Ltd is a specialist mobile advertising business and is expected to help build scale for MBE’s mobile marketing business, by adding new client and publisher relationships and further capacity in the growth segment of online marketing. MBE has signalled that FY15 targets for the acquired company are on track, and expect to see a revenue contribution of $2 million and $0.6 million in profit before tax for the year.

This latest acquisition is another positive development milestone for the company, and is within our expectations for acquisitive growth over the coming year. The multiple paid for the acquisition appears very attractive, although once again we note the risk to earnings accretion from integrating the acquisition, and have accordingly risked its contribution to MBE in the current year. We remain comfortable covering MBE as a Borderline Star Growth Stock with an unchanged Lincoln valuation of $0.32."