Hamburg, January 23, 2020 – gamigo AG (“gamigo”, bond ISIN: SE0011614445) today agreed on acquiring substantially all assets of Verve Wireless Inc (“Verve”) via its US-based subsidiary. Verve is a leading North American mobile data platform for location-based programmatic video and display marketing. This transaction includes Verve’s technology, intellectual property and the team with domain expertise in branded programmatic advertising and its location-based analytics and data management platform. gamigo welcomes Verve’s customers and partners and plans to support further rolling out of the business globally also using synergies within the group.
Verve was founded in 2005 with offices in i.a. New York and San Diego. The acquisition is expected to generate additional net revenues in the lower double-digit million range in the current fiscal year. Depending on the speed of finalizing, restructuring and integrating the transaction within the coming weeks, management expects an additional EBITDA in the low single-digit million range for the year 2020.
The acquisition expands the group’s product portfolio, customer base and sales organization and further strengthens the group’s position in the North American market with strong synergies towards the other media companies as well as gaming companies of the group.
After the acquisition, gamigo will be able to offer advertisers the full range of digital advertising products, from full-service packages to individual services. With approx. 5 million monthly active and approx. 600k daily active users, gamigo has exclusive and high-quality advertising spaces, which represents an additional substantial USP in the area of digital advertising for the B2B segment. In addition, the gaming area will also benefit significantly. Firstly, through the additional expertise and power in the area of user acquisition especially for upcoming game launches. Secondly, the know-how in the field of mobile applications and the software for mobile applications will give gamigo a boost in the field of mobile gaming.
“The ad-tech market is very similar to the gaming market. Technology-driven, with a few very large players, but also very fragmented with many smaller ones, which often get into financial difficulties due to their lack of size and high overhead costs. At the same time, there is a lot of mistrust on the advertiser’s side towards public advertising marketplaces in terms of data quality and transparency. Therefore, we see high potential for organic growth due to our in-house high-quality advertising spaces on the one hand and on the other hand due to the expanded user acquisition power as well as for further inorganic growth through M&A driven market consolidation.” said Remco Westermann, CEO of gamigo.
About the gamigo group:
Since its founding in 2000, gamigo has developed into one of the leading publishers of free-to-play online and mobile games in Europe and North America. The gamigo group has over 350 employees at its headquarters in Hamburg, Germany, with offices in Berlin, Münster, Darmstadt, Cologne (Germany), Warsaw (Poland), Istanbul (Turkey), Chicago, Redwood City, Austin, Bellevue (USA), Toronto (Canada) and Seoul (Korea). The company’s core portfolio includes successful games titles such as ArcheAge, Aura Kingdom, Defiance, Fiesta Online, Rift and Trove. gamigo is growing organically and through acquisitions and has made over 25 acquisitions since 2013, including games, media and technology companies as well as selected game assets.
This press release contains possible forward-looking statements that are based on the current assumptions and forecasts of the company management of gamigo AG or companies associated with it. Various known and unknown risks and uncertainties, as well as other factors, could mean that the actual results, financial circumstances, the development or performance of gamigo AG and the companies associated with it may deviate significantly from the estimations presented here. Neither gamigo AG nor the companies associated with it are obligated to update this sort of forward-looking statement or adjust them to future results or developments.
Axel Mühlhaus / Dr. Sönke Knop
Telephone: +49 69 9055 05 51
Sören Barz, Head of Investor Relations
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22765 Hamburg, Germany