DGAP-Adhoc: blockescence plc: Majority acquisition of ReachHero GmbH

Disclosure of inside information according to Article 17 of Regulation (EU) No. 596/2014 26 February 2019

blockescence plc: Majority acquisition of ReachHero GmbH

Valletta, 26 February 2019: blockescence plc (Security Identification Number WKN: MT0000580101; symbol: BCK, "blockescence") successfully acquires 67.4% of the shares in the influencer and social media specialist ReachHero GmbH. ReachHero has a leading platform solution for influencers and advertisers in Europe. After the acquisitions of the Mediakraft Group and adspree media GmbH by Gamigo AG - a portfolio company of blockescene - another media asset is supplementing the Group portfolio in the B2B area. The purchase price payment is covered by shares of blockescence plc to be newly issued and a cash component. The number of shares will be issued in line with potential purchase price adjustments. The new shares will be subject to a lock-up period of six respectively twelve months. The founders will retain a stake in ReachHero and will continue to manage the company..

The ReachHero acquisition is expected to lead to an additional revenue contribution in the mid single-digit million euro range at blockescence group level in 2019, which will be supported by synergies with the media and gaming companies also belonging to the group. A positive EBITDA by ReachHero is expected for the current year.

The purchase price is in the mid single-digit million range plus earn out. The parties have agreed to not disclose the exact amount of the purchase price.