Somoto Ltd. (TASE:SMTO) entered into an agreement to acquire Meme Video Ltd. for $13 million on August 18, 2016. Under the terms of the agreement, Somoto Ltd. will pay $3.5 million in cash and shares. Additional payments of up to $9.5 million are contingent on the achievement of targets set over a three-year period and if performance exceeds the targets, the payment could be even greater. Somoto will issue maximum 13.47 million shares of which 1.02 million shares will be issued on completion. On August 28, 2016, Somoto announced a private placement of up to 1.02 million ordinary shares and up to 12.45 million ordinary shares, resulting from a convertible loan, which will be part of the consideration for the acquired shares. Meme Video reported revenues of $9 million and operating profit of $4.1 million in 2015. The deal is subject to approval of the stock exchange to allot the consideration shares and is expected to close on August 31, 2016. Somoto Ltd. (TASE:SMTO) completed the acquisition of Meme Video Ltd. on September 1, 2016.