Gaming Realms seeks and the UK based company River UK casino seeks to sign a deal that will see There UK casino getting 70% stake of the company.
The River UK casino a subsidiary of the River gaming. It will buy the stake at a total amount of up to £23.1m which is $30.1 m.
The deal involves the purchase of the Pocket Fruity, Spun Genie, Britain Got Talent games, the X-factor games, and all the related associated businesses. If the deal gets to go through the minority stake in her business is what the Realm Gaming will get to remain with. They will as well have the Slingo.com and Slingo brands under her management.
The current management, however, will continue with the company’s leadership up to June 30th, 2020.
According to a press statement released by the company, £8.4m is what is expected. Half of this amount will be required to be paid after the deal has been fully completed and the other half is to be paid with the earn-out payment plan as businesses continue.
The chief executive officer of Gaming Realms, Patrick Southon said, “We believe that this sale will be transformational for Gaming Realms as it will enable us to focus more on our resources in the international licensing and the development of new gaming content, placing us in a stronger position to drive further profitable growth in the future.”
There is also an additional amount cash payment of £ 14.7m that will be paid out through the earn-out basis. The amount, however, has been set in a deadline of August 31, 2019.
The business that was sold for 2017 alone gets to a GBP of 13.9million of the net gaming revenue and adjusted to a pretax profit before the interest whereas after the central costs of GBP 2.2 million.
In this regard, the Gaming Realms Company has called a general meeting to be held on July 18th. The main agenda for this meeting is to seek approval for that sale. The company shares did close at 10.50p each.
Gaming Realms alludes that the sale is part of their strategy of giving a greater focus to international licensing. It is also to put a higher concentration on the content development agenda and steer the company into the B2B market.
Through the 5-year B2B agreement between the Gaming Realms and River UK casino, annual revenue of up to 1 million GBP is expected to be generated for Gaming Revenue.
As at this moment, the only thing that is preventing this decision from being implemented is the 18th July meeting set to involve all the shareholders.
This comes just after Gaming Reams recently signed a deal with the Gaming Innovation Group, GIG. As he was commenting on the agreement, the CEO, Southon said,” We are extremely excited to be partnering with the Gaming Innovation Group. Given its scale across the iGaming industry, this partnership provides us with a significant opportunity to extend our Slingo content across new markets.”
The 3-year licensing deal was to make the games available across all the Gig’s many successful White Label Operator clients as well s the seven proprietary casino brands.