Gaming Realms to Buy Blueburra Holdings
Tuesday August 19,2014 : ANOTHER ACQUISITION FOR GAMING REALMS PLC
Online gambling group pays GBP 10.5 million for e-gaming marketing firm.
The UK online gambling group Gaming Realms plc revealed Tuesday that it has agreed to buy e-gaming marketing company Blueburra Holdings, the holding company of Digital Blue, for up to GBP10.5 million.
The new acquisition follows the purchase of e-marketing agency QuickThink Media late last year .
Gaming Realms has conditionally raised GBP 6 million to fund the acquisition through a placing of 18.1 million new shares at 33 pence each with new and existing shareholders.
CEO Patrick Southon said the acquisition is in line with Gaming Realms' long-term strategy to increase the combined databases of its subsidiaries.
"Blueburra Holdings will boost our product and marketing initiatives to target the fast growing and overlapping audiences using mobile and tablet platforms which, in turn, will help to accelerate the group's future revenue growth," he commented in a statement, adding that the new buy will boost the reach and capability of QuickThink, adding an enlarged database of customers for cross promotion, along with access to further Dragonfish bingo skins.
Southon said the deal would also allow for a more rapid roll-out of the group's own gambling products, planned to go live by the end of August.
The acquisition should add approximately GBP 1.1 million of annual earnings before interest and tax to the group, Southon said. BlueBurra Holdings had GBP 2.2 million in assets at the end of January, reported GBP 3.8 million in revenue and GBP 1.9 million in pretax profit, including GBP 750,000 of "extraordinary" income on the sale of intellectual property, in the 11 months ended January 31.
The terms of the purchase will see Gaming Realms make an initial payment of GBP 5 million for BlueBurra Holdings, which will be split equally in cash and new shares issued at 33p each. The remaining amount is payable over the next three years, subject to earn-out targets and adjustments, with up to GBP 2.75 million potentially payable in cash and up to GBP 2.75 million potentially payable in new shares.
Some of Blueburra Holdings management team will remain with the company.