Stockholm, Sweden - Sinch AB (publ) - XSTO: SINCH
The Board of Sinch AB (publ) today announces a change to the company's financial leverage policy. The new policy is as follows:
- Sinch's target is that net debt over time shall be below 3.5 times adjusted EBITDA (measured on a rolling twelve month basis).
The phrase 'over time' means that leverage may temporarily exceed the targeted level in the near term following an acquisition. Before today's announcement, the policy was that net debt over time shall be below 2.5 times adjusted EBITDA (measured on a rolling twelve month basis).
Sinch's other financial targets remain unchanged:
- Growth in adjusted EBITDA per share shall be 20 per cent per year.
- Dividend policy: The Board continues to see good growth opportunities through acquisitions over the next few years, and therefore proposes that the company's earnings primarily are reinvested.
Oscar Werner, CEO, comments on the revised policy: "Sinch has made a number of successful acquisitions that have increased our profitability, strengthened our product offering, and broadened our customer base. We see continued opportunities to make further value-accretive acquisitions also in the future, and our revised leverage policy makes us better placed to execute on our M&A strategy".
For further information, please contact
Thomas Heath
Chief Strategy Officer and Head of Investor Relations
Sinch AB
About Sinch
Sinch brings businesses and people closer with tools enabling personal engagement. Its leading cloud communications platform lets businesses reach every mobile phone on the planet, in seconds or less, through mobile messaging, voice and video. Sinch is a trusted software provider to mobile operators, and its platform powers business-critical communications for many of the world's largest companies. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 40 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
This information is information that Sinch AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the above mentioned contact person, at 11:15 CEST on 9 June 2021.
Attachment
- 20210609_Sinch_revised_leverage_policy_ENG (https://ml-eu.globenewswire.com/Resource/Download/b3e0911e-8f7c-401f-a762-ebcaeb603acb)
