UK developer of online gambling solutions Gaming Realms announced earlier today that it is to purchase a number of assets from online streaming products provider RealNetworks.
Under the acquisition deal, Gaming Realms is to take charge of GameHouse’s Canadian and US game studios, the Slingo brand and the related patents, a number of Sovial and Mobile Freemium games, online brands such as Mahjong.com and Sudoku.com, the entire share capital of Backstage Technologies, etc.
The gaming developer would initially pay the amount of $10 million in cash and there will be two additional tranches of $4 million each one and two years after the completion of the transaction. In other words, Gaming Realms would spend a total of $18 million for its latest acquisition.
The deal needs to be given the green light by shareholders in order to be completed. The matter would be considered at a meeting, which is to take place on August 10.
Gaming Realms has already issued 50 million new ordinary shares in the company at a price of 25 pence per share. Thus, it would raise about £12.5 million to fund the acquisition. The software developer said that the placement would be enough to finance $14 million of the purchase and to provide working capital for its enlarged business.
Under the deal, Atul Bali, Gaming Realms’ Non-Executive Director, would serve both as Deputy Chairman and Executive Director of the gaming software developer as well as President of RealNetworks’ games division.
Patrick Southon, Chief Executive Officer of Gaming Realms, commented that this is “a landmark acquisition” for his company. He also said he expects the transformed business would result in Gaming Realms turning into an “international developer, distributor, and marketer” of products for real-money and recreational gaming. Thus, the company would be able to further implement its growth strategy.
Mr. Southon also pointed out that the addition of the Slingo brand is particularly important as it corresponds to the gaming developer’s goal to always provide customers with exciting product offering. According to the executive, the brand has already benefited his company by sitting on its platform together with Gaming Realms’ own brands Spin Genie and Pocket Fruity.
