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Contagious Gaming To Acquire Chelbis Company
Tuesday December 09,2014 : CONTAGIOUS GAMING TO ACQUIRE CHELBIS COMPANY LTD
Acquisition will diversify revenue streams
Software services provider Contagious Gaming has entered into an acquisition agreement for all of the issued and outstanding securities of Chelbis Company Ltd for a consideration of CAD$4,050,000 plus an earn-out consideration for the next two years.
Chelbis owns and operates established bingo destinations House of Bingo, Gone Bingo and Harrys Bingo along with bingo networks Best Bingo Network, Super Bingo Network and Fun Bingo Network. The company supports 14 white label bingo partner websites within its networks.
Contagious Gaming foresees significant synergies in the combined entity such as the ability to leverage the company’s software platform and content library for deployment into Chelbis networks, while Chelbis’ CRM infrastructure will be used to handle Contagious Gaming’s requirements for its Goal Time product.
Peter Glancy, chief executive officer and director of Contagious Gaming said: "The Acquisition of Chelbis is expected to be materially accretive, diversifying our revenue streams, providing consistent cash flow and allowing us to capitalize on synergies which should ultimately increase margins and reduce costs. We look forward to completing the Acquisition of Chelbis and welcoming them as Contagious Gaming shareholders."
"We look forward to completing the acquisition and joining the Contagious Gaming team where we will be able to leverage our resources and create synergies to drive value for shareholders,” added Madhu Avalur, chief executive officer for Chelbis.
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