13th Sep 2005 07:04
Empire Online Limited13 September 2005 Empire Online Limited ("Empire Online" or "the Company") Acquisition update On 1 August 2005, Empire Online announced that it had conditionally agreed,subject to due diligence, to acquire the business and certain assets of ClubDice on-line gaming platforms ("Club Dice") from Crown Solutions Gaming Limitedand Uniplay International Limited ("the Acquisition"). The Company announcesthat, following its satisfactory due diligence, it has today completed theAcquisition. Club Dice utilises Playtech Limited software under license. Established in 2001, Club Dice comprises three casino brands and one bingobrand: • Club Dice Casino, • MonacoGold Casino, • Carnival Casino and • YouBingo. The Club Dice database currently comprises over 75,000 registered real moneycustomers. The Acquisition comprises, inter alia, the player database, certainintellectual property, and a license to operate Playtech Limited software acrossthe four platforms. Club Dice has seen substantial recent growth in revenues, profits and new signups. The consideration for the acquisition, payable in cash, is the aggregate of(i) US$5 million which was paid on 22 August 2005; (ii) US$22 million payable oncompletion of the Acquisition; and (iii) the balance which will be deferredconsideration payable based on the profitability of the business between 1August and 31 December 2005. This final amount is currently expected to beapproximately US$13 million and is payable in eight monthly instalments, thefirst instalment being paid one month from completion of the Acquisition. Asannounced on 1 August 2005, the Directors expect this to represent a net incomemultiple at a significant discount to Empire Online's current price to earnings(PER) ratio. In the year ended 31 December 2004, the assets the subject of the transactionwould have contributed net profit of approximately US$2.7 million to EmpireOnline and, in the six months ended 30 June 2005, would have contributed netprofit of approximately US$2.4 million to the Company. The Directors areintending to invest in the re-launch of Club Dice in order to increase itsrevenue in the future. Trading update Empire Online trading has been good during the recent months with a level ofactivity and performance in line with the Company's expectations. Enquiries: Citigate Dewe Rogerson +44 (0) 20 7638 9571Simon Rigby / Sarah Gestetner This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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