(GETM.L) Getmobile Europe PLC Buy/Sell

RNS Number : 8031Z Getmobile Europe PLC 29 September 2009

getmobile europe plc ("getmobile" or the "Company")

Acquisition of further 11.87% Stake in Shirtinator AG for EUR273,118

getmobile announces that it has acquired a further 11.87% stake in Shirtinator AG ("Shirtinator") at a cost of EUR273,118 taking its interest in the company to 36.87%. Shirtinator is an e-commerce business engaged in on-line marketing and retailing of customised printed T-shirts and other items of clothing primarily in Germany and other European markets. getmobile announced the acquisition of an initial 25% stake on 25 February 2009.

Background

Shirtinator was established in Munich in 2007 by a group of entrepreneurs, business angels and early stage investors. Shirtinator believes that it is now the third largest on-line vendor of customised printed T-shirts in Germany where 95% of its sales currently take place via its www.shirtinator.de website. The product range is also available on a number of additional websites including www.shirtinator.co.uk and www.shirtinator.sk as well as on its white label platform www.shirtinator.net. The business operates from its base in Munich and via a subsidiary based in Bratislava, Slovakia where its production and IT facilities are based.

Shirtinator employs 20 people and is led by CEO Sven Rittau who, in 1999, was a co-founder of Zooplus AG, the leading European on-line pet supplies retailer which is quoted on the Deutsche B?'s Entry Standard Market. He was COO of Zooplus until 2007.

The acquisition of this additional stake is in line with the Company's objective of expanding its range of e-commerce activities leveraging getmobile's management team's extensive knowledge and experience of e-commerce and direct marketing.

Related Party Transaction

getmobile has acquired the additional 11.87% stake for EUR273,118 in cash from Tiburon AG, an early-stage investment fund in which a number of the directors of getmobile are investors and, in some cases, are members of either its Vorstand or Supervisory Board. Accordingly the transaction is deemed to be a related party transaction for the purposes of AIM Rule 13.

Shirtinator has performed ahead of expectations at the time of getmobile's original investment with unaudited revenues for the 6 months to 30 June 2009 of EUR1.86m and unaudited operating profits of approximately EUR146,000. Shirtinator had net cash balances at that date of approximately EUR800,000 providing the balance sheet strength to finance its continued anticipated growth getmobile believes that this trading performance reflects, inter alia, the benefit of getmobile's expertise in the use of television advertising and other media to generate increased business for Shirtinator.

With the exception of any director who is involved in the transaction as a related party, getmobile's directors consider, having consulted with Davy Corporate Finance, its nominated advisor, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

It is not anticipated that the additional investment in Shirtinator will have a material impact on the results of getmobile for the year ended 31 December, 2009.

This information is provided by RNS The company news service from the London Stock Exchange

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