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NetPlayTV has completed the acquisition of Abstract Games

12/22/09 - The UK online and interactive television gambling group NetPlayTV has completed the acquisition of Abstract Games, which will be sold back to the original owners with the company retaining subscription services revenues. NetPlay has also finalised its mobile gambling deal for the mobile casino services operations of Info-Download, a subsidiary of entertainment products developer Zed Worldwide.

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Abstract Games was purchased in February 2007 for GBP 500 000 upfront, with the deal allowing for deferred payments capped at GBP 3.5 million. In addition to the first tranche of deferred consideration of GBP 1.01 million paid last year, the NetPlay board has agreed a final payment with the sellers of GBP 1.1 million which will be paid immediately in full as final settlement of the purchase agreement, bringing the total consideration to GBP 2.61 million.
 
The business will now be sold back to the sellers for a nominal GBP 1 following NetPlay's decision to divest itself of its premium rate telephony business, but NetPlay will be retaining the recurring revenues from the subscription services operated by Abstract Games since they joined the group.
 
The acquisition of quiz and mobile casino services from Info-Download Ltd was announced in January 2009 for a consideration of GBP 750 000 paid in the company’s shares, GBP 500 000 of which was paid upfront and the remaining deferred payment of GBP 250 000 million will be issued in shares later this month.
 
As part of the settlement, Netplay TV will cease paying Zed Worldwide GBP 10 000 a month for global distribution of its products after deciding to focus its expansion in regulated markets. Another reason for the change of direction is the five year strategic deal with Playtech recently, as a result of which NetPlay TV no longer has a requirement for Zed Worldwide to develop mobile side games.
 
Through its agreement with Playtech the company is now able to offer in excess of 10 mobile side games with jackpots exceeding GBP 200 000.
 
NetPlay revealed this week that the mobile quiz revenues have remained constant since acquisition, while the mobile casino revenues have shown “exceptional growth” with the bets placed through the mobile casino platform amounting to GBP 900 000 in November '09, while showing continued growth on a month to month basis.



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