23rd Nov 2006 07:00
Interactive World plc23 November 2006 RNS Release 23 November 2006 Interactive World Acquires UK and European Rights to U.R. The Star Interactive World plc (AIM: ITW), the digital content technology company, hasacquired the exclusive UK and European licensing rights and customer database of'U.R. The Star'. U.R. The Star uses established video technology that allowscustomers to make personalised DVDs in which their children, family or friends'star' in their own animated adventures. The DVDs are normally given as gifts,with peak sales occurring around Christmas. The Company has acquired the rights and the database of 100,000 users fromDarker Enterprises Ltd, which has successfully exploited them over a 10-yearperiod. Interactive World will pay a consideration of £500,000 in cash for a 15year period. As the rights and the database were among many other assetspreviously owned and exploited by Darker Enterprises Limited, it is onlypossible to estimate the profits earned historically by these particular assets.However, the directors of Interactive World are confident the acquisition of therights will be significantly Group earnings enhancing from late 2007 onwards. Darker Enterprises Ltd is wholly owned by Roldvale Ltd of which David Sullivanowns the entire issued share capital. Mr. Sullivan also currently owns 63.9% ofInteractive World, and as a result the acquisition is classified as a relatedparty transaction under the AIM rules. Rob Johnson, CEO of Interactive World,has consulted with the Company's nominated adviser who considers the terms ofthe acquisition fair and reasonable insofar as the Company's shareholders areconcerned. Interactive World believes its expertise in online and print marketing,particularly through cost-effective advertising, will enable it to substantiallyincrease sales of U.R. The Star. The Company intends to use its proprietarytechnology to enable customers to send multimedia messages for the first time,including photographs, direct to its platform from their mobile phones. Thiswill make the ordering process quicker and easier, and is expected to increasesales. Currently, negotiations are being conducted regarding the introduction ofa major branded comic character in 2007, boosting the product range.The acquisition is part of Interactive World's expansion strategy to exploit itsexpertise more widely in digital media, and to expand the distribution ofadditional forms of content, including music and sport. Commenting on the acquisition, Rob Johnson, CEO of Interactive World said: "The acquisition of the UK and European rights to U.R. The Star is part of agrowth strategy in which we make low risk acquisitions of companies with proventechnology and products. We see this acquisition, the first since we listed onAIM in May 2006, as one where we can add value through our technology, databasemanagement experience, and online and offline marketing skills." Enquiries: Interactive World 020 8507 6969Rob Johnson, Chief ExecutiveAndrew Fletcher, Finance Director Gresham PR Ltd 020 7404 9000Neil Boom Information on Interactive World can be accessed via the Group's website:www.interactiveworld.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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