- GameSpree to make positive contribution to net profit and cash flow immediately
- Acquisition offers great growth potential internationally
- Platform strategy delivers substantial savings
- Acquisition financed by equity
The gamigo group, a leading gaming company in Europe and North America, today announced that it has further enhanced its position in the games market by acquiring Berlin-based GameSpree GmbH, a dynamic and internationally operating publisher of browser and mobile games. With this most recent acquisition, which is effective retroactively as of 1 February 2015, gamigo expands its games portfolio and at the same time leverages synergy effects by pursuing its new platform strategy.
The purchase price will be fully paid with new gamigo shares. Both parties agreed to maintain confidentiality regarding the exact purchase price.
Two of the games offered by GameSpree, “Kings & Legends” and “WAR2 Glory”, have particularly strong international growth potential. GameSpree generates revenue of around EUR 2.5 million annually. Its operating profit (EBITDA) for 2015 is expected to total around EUR 0.8 million. As a result, GameSpree will boost gamigo’s positive cash flow effective immediately.
The acquisition also triggers substantial cost savings. GameSpree and gamigo’s Berlin equity investment, mobile games publisher Piraya Mobile GmbH, will be consolidated at the Berlin site. The integration of GameSpree’s technology into the gamigo platform will also result in additional savings.
By implementing its successful acquisition strategy, gamigo is increasing volume on its platform, thereby improving its efficiency. gamigo plans to make further value-creating acquisitions.
Theodor Niehues, member of the executive board of the gamigo group, explains: “We do not just announce acquisitions, we deliver. After the acquisition of INTENIUM and the increase of our share in Piraya from 49% to 100%, GameSpree is the third acquisition within just a few months. This move boosts our earnings because additional volume on our platform results in higher efficiency. I am particularly pleased that this acquisition has added two new games to our portfolio that show very strong growth internationally.”
About gamigo group:
The gamigo group is one of the leading gaming companies in Europe and North America. gamigo was one of the first companies to discover the booming market segment of online games and published the first MMOG that was completely localized into German as early as 2000. Approximately 100 employees in Hamburg, Berlin (Germany), San Francisco, Chicago (USA) and Seoul (Korea) are focusing on the three business areas Platform Services (including GaaS), Publishing of free to play mobile and online games and running gaming portals. gamigo has a wide range of highly-popular titles and a loyal customer base, including successful multiplayer online role-playing games such as “Fiesta Online” and “Last Chaos”. On top, the games portfolio continues to be further expanded with new titles, such as the recent additions “Guns & Robots”, “General War” and “Wickie Online”. The gamigo group has a total of well over 35 million registered game accounts worldwide. In addition to online multiplayer games, gamigo is also increasingly investing in mobile games, including games such as “Dino On Fire” and “The Rats”.
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