United Online (UNTD) to Sell StayFriends in EUR 16M Deal

March 31, 2016 4:01 PM EDT

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United Online, Inc. (Nasdaq: UNTD) announced that it has entered into a material definitive agreement with Ströer Content Group GmbH (DE: SAX) (“Ströer”), a leading provider of out-of-home and online advertising services based in Germany, to sell all of the stock of its wholly-owned subsidiaries, comprising its StayFriends’ business, the Company’s European websites for social networking products and services. The company will receive total cash consideration of 16.0 million euros, which includes 6.5 million euros of cash on StayFriends’ balance sheet.

“The anticipated sale of StayFriends is consistent with our strategy to exit the Social Media business following the sale of Classmates in August 2015,” commented Jeff Goldstein, Interim Chief Executive Officer of United Online. “In addition, we believe this outcome is another step towards our goal of maximizing shareholder value through our ongoing evaluation of strategic alternatives with JMP Securities.”

Mr. Goldstein continued, “This agreement is the culmination of a highly competitive and extensive process initiated on October 9, 2015 by our sell side advisor, ACXIT Capital Management, whereby ACXIT contacted a broad universe of potential strategic and financial buyers to maximize the value of StayFriends. The Board concluded that the agreement with Ströer was the superior value creating alternative for our shareholders.”

StayFriends includes five international websites in Germany, Sweden, Austria and Switzerland (www.stayfriends.de, www.stayfriends.se, www.stayfriends.at and www.stayfriends.ch, respectively), and Trombi in France (www.trombi.com).

The closing of the transaction is subject to Sections 35 et subseq. German Antitrust Act (Gesetz gegen Wettbewerbsbeschränkungen - GWB) and is expected to occur by April 30, 2016. The Company does not intend to disclose further developments related to the strategic alternatives process until its Board of Directors approves a specific action or otherwise concludes the review of the strategic alternatives.

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