31st Jul 2015 08:25
LONDON (Alliance News) - Stride Gaming PLC on Friday said it has acquired InfiApps Ltd for up to USD39.2 million to give it a robust presence in the social gaming segment, particularly in the US, Canada and Australia.
Stride floated in London in May, raising GBP10 million, with the stated goal of acquiring smaller-scale online bingo companies, which it thinks are likely to suffer from the implementation of the point-of-consumption tax in the UK and a general increase in regulation on the gambling sector.
It will pay up to USD39.2 million to acquire InfiApps Ltd, a mobile social gaming business, split between a USD21.2 million cash payment upfront and a further USD18 million earn-out payable based on InfiApps hitting earnings targets in the next two years.
The deal is being funded by existing cash resources and by a GBP8 million loan to Stride from Poppy Investments Ltd, which holds a 7.8% stake in Stride.
Stride said the acquisition of InfiApps, which runs the Slot Bonanza game, will add material scale and reach to its existing operations.
"I am extremely pleased by the acquisition of InfiApps. With revenue in the US social gaming industry alone forecast to exceed USD12.3 billion in 2017, this deal provides us with an opportunity to enter into the rapidly growing mobile social gaming space and will further advance and bolster our growing position in the online gaming sector," said Stride Chief Executive Eitan Boyd.
"The addition of InfiApps widens our current portfolio of products and brands and will significantly enhance and diversify our player offering internationally, as well as provide access to new users and new geographies generating significant operational leverage," Boyd added.
Shares in Stride were up 12% to 249.00 pence on Friday morning
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
STR.L