LINK Mobility Acquires South Africa’s SMSPortal in $115M Deal
The acquisition aligns with LINK’s strategy of inorganic growth, providing access to a fast-growing and well-regulated African market with strong potential for further expansion.
LINK Mobility has announced the acquisition of SMSPortal , South Africa’s leading provider of A2P (Application-to-Person) messaging services, in a move that significantly expands LINK’s operations beyond Europe. The acquisition aligns with LINK’s strategy of inorganic growth, providing access to a fast-growing and well-regulated African market with strong potential for further expansion.
SMSPortal, headquartered in Cape Town, has built a stable base of enterprise customers, including large local and international clients, as well as a long tail of SMEs. Its customer profile and operations provide a strong fit with LINK’s business model, complementing its portfolio of communication platform-as-a-service (CPaaS) solutions. SMSPortal will continue to operate as an independent unit under its current leadership while leveraging LINK’s expertise, resources, and products to expand service delivery and profitability.
Financially, the deal highlights SMSPortal’s strong track record. For the 12 months ending April 2025, it generated revenues of USD 112 million and EBITDA of USD 25 million, with a margin of 22%. Over the last three years, revenue has grown from USD 65 million to USD 112 million, driven by market expansion and high customer retention. EBITDA more than doubled in the same period, with margins rising from 17% to 22%.
The acquisition values SMSPortal at USD 115 million upfront, comprised of USD 100 million in cash and USD 15 million in equity, equating to 5.9 million LINK shares issued at NOK 26 per share. An additional conditional payment of up to USD 30 million is included, based on performance targets, bringing the potential deal value to USD 145 million. This implies a multiple of 4.6x cash EBITDA, or up to 5.8x including conditional payments.
The deal is expected to close in Q3 2025, subject to regulatory approval and closing conditions. On a pro-forma basis, LINK’s net interest-bearing debt rises to NOK 2.0 billion, with a leverage ratio of 1.8x, comfortably within its target range. The acquisition is described as immediately EBITDA accretive, reinforcing LINK’s growth trajectory and boosting its valuation outlook.
Looking forward, SMSPortal is expected to sustain high-margin growth, delivering high single-digit annual gross profit increases from current operations. Further upside is anticipated through the rollout of LINK’s CPaaS solutions, including conversational services on RCS and WhatsApp. The acquisition cements LINK’s entry into South Africa’s digital communications market and strengthens its position as a global CPaaS leader.
