26 July 2000

TEAMtalk.com ACQUIRES LEADING US SOCCER BUSINESS

TEAMtalk.com Group plc ('TEAMtalk') is pleased to announce that it has agreed to acquire all of the issued share capital of internetsoccer.com, Inc. ('internetsoccer.com'), the leading soccer web-site operator in North America, for a total maximum consideration of #10 million ($15 million).

The acquisition is a significant step in the fulfillment of Teamtalk's strategy and gives it a leading position in North America, the world's largest Internet market. The combination of TEAMtalk.com and internetsoccer.com will create a global soccer information business, with all the key elements to become the leading provider of sports information as the Internet and wirefree markets develop globally.

Consideration

The maximum consideration comprises initial consideration of #8 million ($12 million) and deferred consideration of up to #2 million ($3 million).

The initial consideration is payable partly by the issue of a #800,000 ($1.2 million) non-interest bearing loan note and, partly by the allotment, credited as fully paid, of approximately 12 million new ordinary shares at 48p each.

The deferred consideration up to a maximum of #2 million ($3 million), will be payable in cash in two tranches based on gross revenue performance for the fiscal years 2000 and 2001.

Internetsoccer.com's six founder shareholders who will continue to work for the enlarged group, have undertaken to retain their shares for a period of 12 months from the closing date and thereafter up to 80 per cent. of their holdings for a further 9 month period.

internetsoccer.com (www.internetsoccer.com)

Founded in Charlotte, North Carolina in mid-1999, internetsoccer.com is the leading player in soccer content in North America and the number one soccer portal in the US. The business develops original content from a grass-roots level to target both soccer enthusiasts and players. Content is generated by a team of 120 reporters (both in-house and freelance), located in 20 different states in the US (including two writers in every Major League Soccer city) and in 24 other countries including Brazil, Argentina, South Africa, China and Japan.

The US is already a significant soccer country. According to the Soccer Industry Council of America, more than 17 million Americans play soccer and the number is growing strongly (compared to over 2.9 million active players in England). Soccer is the number 1 youth participation sport in the US with over 3.6 million under 19s registered to play, a number which has been expanding at over 8% per annum since 1990.

internetsoccer.com also owns and operates soccerspot.com, the leading web-provider of Major League Soccer news and information. internetsoccer.com operates on its own content management and syndication platform and e-commerce engine.

In addition, internetsoccer.com operates web-sites for various soccer organizations in North America, including: collegesoccer.com, youthsoccer.org and nscaa.com. It has a network of 20 affiliated sites around the world.

In May 2000, internetsoccer.com's five major sites had 230,000 unique users, received 550,000 visits and generated 8.5 million page impressions. For its first five months to 31 December 1999, internetsoccer.com reported an operating loss of #260,000 ($390,000) and net assets of #76,000 ($114,000).

Comments

Bill Wilson, Chairman & Chief Executive of Teamtalk, said:
'The acquisition of internetsoccer.com underlines our plans to develop the leading sports information business in the Internet world. It combines the leading UK soccer service with the leading player in North America to create a truly global business, creating compelling sports content for delivery over the web and mobile phones. The team at internetsoccer.com combine their strong US soccer credentials with proven experience in the US Internet market.'

Mac Lackey, President & Chief Executive of internetsoccer.com, said:
'internetsoccer.com is excited to join forces with TEAMtalk.com and further the mission of creating a global sports information business. TEAMtalk.com has established itself as an innovator and a market leader with a strong vision and powerful management. The combined group will deliver a sports information offering that is unmatched by any company or Internet site on the planet.'

Back

Print this Page