Gaming Realms, the online publisher who recently acquired Quickthink Media, has now announced the proposed acquisition of specialist eGaming marketing company Blueburra Holdings. In the deal, Gaming Realms will buy the holding company of Digital Blue for a combined consideration that may total as much £10.5 million (€13.2 million/$17.5 million). The deal will be structured by way of an initial £5m divided between an equal split of cash and new ordinary shares issued at £0.33 each, with performance and earnings related targets over the course of the next three years accounting for a further 2 payments realizing up of £2.75million respectively.
This latest acquisition, in the words of Gaming Realms chief executive Patric Southon “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.”
Blueberra which also owns various white labeled bingo skins and operates the popular affiliate website Bingoport.co.uk, “will complement and significantly enhance our overall marketing capabilities when combined with our recent acquisition of Quickthink Media, which has been successfully integrated into the Group” added Southon.
In turn Scott Logan, co-founder of Blueburra Holdings, added: “The Blueburra Holdings marketing approach to optimizing player engagement fits well with Gaming Realms’s model of generating optimum and maximum player values across multiple platforms.
“Combining our capabilities and successful brands with those of Quickthink Media will enable the expanded group to increase the number of real money players and revenue growth.
“Our ambitions are aligned with those of Gaming Realms and we believe that the acquisition will create long term value for the group.”
The acquisition is expected to add approximately £1.1 million of annual earnings before interest and tax to the group, according to Gaming Realms. BlueBurra Holdings had £2.2 million in assets at the end of January, reported 3.8 million in revenue and 1.9 million in pretax profit, including £750,000 of “extraordinary” income on the sale of intellectual property, in the 11 months ended January 31.
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