LINK Mobility purchases South African messaging provider SMSPortal for $115 Million

European messaging company acquires Cape Town-based A2P SMS provider to expand beyond European markets. Transaction values SMSPortal at 4.6x cash EBITDA based on $112 million revenue and $25 million EBITDA performance.

 Andre Ittmann, CEO of SMSPortal.

LINK Mobility has announced the acquisition of SMSPortal, an Application-to-Person messaging services provider based in South Africa with international operations. The transaction represents LINK's expansion beyond European markets through its acquisition strategy.

SMSPortal operates as an A2P SMS messaging provider serving local and international customers across enterprise segments. The company maintains operations from its Cape Town headquarters and has established customer relationships in both small-medium business and enterprise markets.

For the 12-month period ending April 2025, SMSPortal generated group revenues of $112 million and group EBITDA of $25 million, representing an EBITDA margin of 22%. The financial performance demonstrates the company's position in the South African messaging market.

The purchase price totals $115 million before conditional payments. LINK will pay $100 million upfront in cash and $15 million in equity consideration through 5.9 million shares issued at NOK 26 per share. The transaction structure implies a cash EBITDA multiple of 4.6x.

Additional conditional payments of up to $30 million may apply over two annual tranches, bringing the total potential purchase price to $145 million. These payments depend on SMSPortal meeting predetermined performance targets.

"The acquisition aligns with LINK's M&A approach and extends our footprint to a new market with predictable market conditions, stable legislation and telco regulations," said Thomas Berge, CEO of LINK Mobility. The transaction provides access to the South African market while maintaining the company's financial structure.

SMSPortal will operate as an independent business unit, retaining its brand and leadership structure. The existing management team and employees will continue operations from Cape Town, serving their current customer base.

"Being part of a European industry participant like LINK enables us to enhance our product offering. By leveraging LINK's expertise, resources and products, we can deliver communications services to a broader local and international customer base," said Andre Ittmann, CEO of SMSPortal.

Over the past three years, SMSPortal has scaled operations with group revenue growing from $65 million to $112 million. Gross profit demonstrated a compound annual growth rate of 43% during this period, while EBITDA increased from $11 million to $25 million. The EBITDA margin improved from 17% to 22% over the same timeframe.

On a pro-forma basis, LINK's net interest-bearing debt increases to NOK 2.0 billion as of Q1 2025, resulting in a leverage ratio of 1.8x. This ratio remains within LINK's target range of 2.0x-2.5x, considering receivables from recent divestments.

The transaction is expected to close in Q3 2025, subject to regulatory approvals and standard closing conditions. SMSPortal's revenue base and customer relationships provide a foundation for operations in the South African market, with potential for introducing LINK's CPaaS products including RCS and WhatsApp solutions.