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FREELANCER LIMITED — Capital/Financing Update 2015
Apr 26, 2015
64924_rns_2015-04-26_7df7c1f7-8c3c-4e04-a43e-14de0c619613.pdf
Capital/Financing Update
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ASX Announcement | 27 April 2015
Freelancer.com announces the acquisition of Escrow.com and completion of capital raising
Freelancer Limited ( Freelancer or the Company ) (ASX: FLN), the world’s largest freelancing and crowdsourcing marketplace[1] , today announced that it had entered into a definitive agreement to acquire Escrow.com from a private investor for US$7.5 million in cash, and completed a AUD$10 million placement of ordinary shares to institutional investors.
Headquartered in California, Escrow.com provides online escrow services that facilitate and accelerate e- commerce by assuring secure settlement. It was founded in 1999 by Fidelity National Financial, a Fortune 500 company and the US’s largest provider of commercial and residential mortgage and diversified services.
Escrow.com is the leading provider of secure online payments and online transaction management for consumers and businesses on the Internet, with FY14 gross payment volume of US$265 million, net revenue of US$5 million, US$1.2 million in EBITDA and over US$2.2 billion in transactions to date.
Escrow.com reduces the risk of fraud by acting as a trusted third party that collects, holds and disburses funds according to buyer and seller instructions. Escrow services provided by the company are licensed and regulated.
Escrow.com partners include eBay, GoDaddy, AutoTrader.com, Flippa.com and it is also a strategic partner of the U.S. Commercial Service (USCS) in support of President Obama’s National Export Initiative designed to significantly grow US export volume.
Freelancer.com Chief Executive Matt Barrie said, “We are pleased to acquire Escrow.com, the world’s largest online escrow company. This highly complementary acquisition will enhance the ability of our 15 million users to transact securely, and there are large opportunities for growth and synergies with core offerings. Finally, it is a strong cornerstone for entering the payments space”.
Escrow.com President & Managing Director Brandon Abbey said, “We are excited to be joining the Freelancer.com group. Freelancer’s expertise in marketplaces, combined with our expertise in secure online payments are an excellent strategic fit.”.
The Escrow.com group staff will be continuing with the California-based business.
A capital raising of AUD$10 million of ordinary shares to institutional investors was oversubscribed and has been completed to fund the acquisition, and for general corporate purposes. 10 million ordinary shares were issued at $1.00, a premium to the last close of $0.995. UBS AG, Australia Branch, was sole bookrunner for the deal. The acquisition of Escrow.com is subject to regulatory approval.
Settlement of the placement is currently scheduled to take place on Thursday, 30 April 2015, with allotment and quotation of shares expected to occur on the ASX on Friday, 1 May 2015. Escrow.com was advised in the transaction by Capstone Partners LLC.
ENDS
1 by total number of users and projects & contests posted
FREELANCER LIMITED | ACN 141 959 042 Registered Office: Level 20, 680 George Street, Sydney NSW 2000 Australia T +61 2 8599 2700 | E [email protected] | www.freelancer.com
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ASX Announcement | 27 April 2015
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About Freelancer ®
Quadruple Webby award-winning Freelancer.com is the world’s largest freelancing, crowdsourcing and local services marketplace by total number of users and projects posted. Over 15 million registered users have posted 7.5 million projects and contests to date in over 850 areas as diverse as website development, logo design, marketing, copywriting, astrophysics, aerospace engineering and manufacturing. Freelancer Limited is listed on the Australian Securities Exchange under the ticker ASX:FLN.
For more information, contact:
| Christopher Koch | Deputy Chief Financial Officer & Investor Relations |
|---|---|
| Tel: | +61 409 788 637 |
| Email: | [email protected] |
| Adam Byrnes | Snr. International Director (incl. Europe) |
| Tel: | +44 784 161 2078 |
| [email protected] | |
| Sebastian Siseles | International Director (incl. Latin America & Spain) |
| Tel | +54 911 32 60 07 30 |
| [email protected] | |
| Nik Badminton | Regional Director, North America |
| Tel | +1 778 384 6446 |
| [email protected] | |
| Evan Tan | Regional Director, South East Asia |
| Tel | +63 908 882 8519 |
| [email protected] |
http://www.freelancer.com
Important Notice
This announcement has been prepared for publication in Australia and may not be released or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction in which such an offer would be illegal. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933, as amended (“US Securities Act”), or the securities laws of any state or jurisdiction of the United States, or in any other. Accordingly, the securities may not be offered or sold, directly or indirectly, in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and any applicable US state securities laws. The securities under the Placement will only be offered and sold outside the United States in “offshore transactions” in reliance on Regulation S under the US Securities Act.
FREELANCER LIMITED | ACN 141 959 042 Registered Office: Level 20, 680 George Street, Sydney NSW 2000 Australia T +61 2 8599 2700 | E [email protected] | www.freelancer.com