TIDMGFIN
RNS Number : 8510L
Gfinity PLC
24 July 2017
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
Gfinity plc
("Gfinity" or the "Company")
Acquisition of CEVO, Inc
Gfinity buys USA based global provider of services and
technology to the esports industry
Gfinity plc, a leading esports business, announces that it has
acquired the entire issued share capital of CEVO, Inc ('CEVO'), an
American based, industry renowned, global provider of technology
and services to the esports market, for a total consideration of up
to $2.7 million payable in cash and shares.
Founded in 2004, CEVO has built an outstanding reputation for
the operation of its own esports competitions, primarily in North
America, and as a provider of technology and services to a client
base of blue-chip organisations in the esports space. CEVO has
developed proprietary technology and a suite of esports products,
including leading anti-cheat software, used by a number of major
operators in the industry, including Gfinity, and a range of
esports broadcast products.
Acquisition highlights
-- CEVO's technology, including its tournament management
system, anti-cheat system and dynamic broadcast software,
strengthens Gfinity's position as a leading provider of end-to-end
esports solutions
-- The acquisition accelerates Gfinity's overseas expansion into
North America, helping Gfinity deliver on its strategy of building
a leading global esports business.
-- The CEVO management team, with almost 50 years of collective
experience in the esports industry, strengthens Gfinity's
capability to take advantage of the wide range of opportunities in
the fast growing esports sector
-- Total consideration of up to $2.7m:
-- The consideration will be satisfied through the immediate
payment of $977,200 in cash and the issue of 3,614,049 ordinary
shares of 0.1p each in Gfinity ("Ordinary Shares") at a price of
19.63p per Ordinary Share, being the average closing mid-market
share price during June 2017, to the vendors ("Initial
Consideration Shares")
-- Deferred cash consideration of up to $418,800 in cash and the
issue of up to 1,548,877 Ordinary Shares at a price of 19.63p per
Ordinary Share subject to achieving revenue targets for 2017
-- Gfinity will grant options over 2,079,052 Ordinary Shares to
current CEVO staff as part of the transaction. These options will
be exercisable at 19.63p per share after a year from the completion
date of the transaction until 30 August 2027 (30% being subject to
the deferred cash and share consideration targets having been
achieved).
Acquisition rationale
The acquisition is in line with Gfinity's strategy to grow
shareholder value by establishing itself as the world's leading
global esports business as it continues to expand its global
footprint in the fast growing esports market.
CEVO has been a technology supplier to Gfinity for three years
and is renowned as one of the leading technology providers to the
esports industry. The acquisition demonstrates Gfinity's global
ambitions, which have already been highlighted by the delivery so
far this year of events in the UK, Mexico, France and the USA.
In acquiring CEVO, Gfinity will be supplementing its existing
technology and management team with some of the most experienced
operators in the esports industry, leaving the Company well
positioned to take advantage of the growing number and scale of
esports opportunities. The Directors of Gfinity believe they will
be able to build out and enhance the Company's core products
through the integration of CEVO's key technology. The Directors of
the Company believe that Gfinity's core product suite, now combined
with CEVO's technology, represents one of the market leading suites
of esports technology.
In the financial year ended 31 December 2016, CEVO generated
revenues of $826,000, $24,000 of which related to sales to Gfinity.
As at 30 June 2017, CEVO had net assets of $63,171 and $59,841
cash. The vendors of CEVO are the founders, management team and
consultants to the business.
Neville Upton, Chief Executive of Gfinity, said:
"We are delighted to have acquired one of the most reputable
esports technology players in the in the industry, which further
strengthens our position as a market leader in esports technology.
It also demonstrates our determination to become a leading global
player in the industry having previously delivered events in the
UK, France, Mexico and USA since the start of this year.
"CEVO's combined experience of 50 years in the market
supplements our existing team of talented individuals - creating
one of the most experienced esports operators in the industry -
leaving us well positioned to take advantage of a growing number of
esports opportunities in future."
Eric Ping, Chief Executive of CEVO, said:
"We are very excited to join Gfinity, with whom we have enjoyed
a strong relationship with for several years. This is a great
opportunity to create a truly world-class global esports business.
Our combined technical capability allows us to provide a truly
valuable suite of esports products and solutions which we look
forward to presenting to our partners."
Admission and Total Voting Rights
Application will be made to London Stock Exchange for the
Initial Consideration Shares to be admitted to trading on AIM and
such admission is expected to occur on 26 July 2017 ("Admission").
On Admission, the Company will have 192,277,619 Ordinary Shares in
issue, each with one voting right. There are no shares held in
treasury. Therefore, the Company's total number of ordinary shares
and voting rights will be 192,277,619.
The above figure of 192,277,619 may be used by shareholders in
the Company as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the Company under the FCA's
Disclosure Guidance and Transparency Rules.
Enquiries:
Gfinity plc www.gfinityplc.com
Neville Upton, Chief Executive Via Walbrook PR
Officer
Allenby Capital Limited - AIM Tel. +44 20 3328
Nominated Adviser and Broker 5656
Jeremy Porter / John Depasquale
/ James Thomas
Walbrook PR (Media & Investor Tel: +44 (0)20
Relations) 7933 8780
Paul Cornelius / Helen Cresswell or gfinity@walbrookpr.com
/ Sam Allen
About Gfinity
Founded in 2012, Gfinity has quickly established itself as one
of the world's leading esports businesses. The London-based Company
enjoys strong relationships with game publishers, players and the
wider esports community and has built a reputation for delivering
top quality esport competitions, both on-line and off-line, and
producing industry leading esports broadcasts.
Gfinity stages world leading esports events in which the world's
top esport players travel to the Gfinity Arena in London to take
part in competitions broadcast on-line to millions of viewers
worldwide. Gfinity stages live esports events featuring top video
gaming titles, across PCs, consoles and mobile devices.
Gfinity monetises the strong position that it has created
through a combination of sponsorship, advertising, broadcast income
relating to Gfinity's own events and through fees received for
creating and delivering bespoke events for sponsors and game
publishers seeking to engage with the esports community.
About CEVO
CEVO was founded in Maryland in 2004 with the aim of
transforming a fledgling competitive gaming industry into a
professional sport and has since built a formidable reputation in
the esports industry.
CEVO provides esports services and innovative technologies to
clients globally. CEVO help craft bespoke, authentic esports
experiences with first class production and broadcasting services.
For deeper engagements CEVO also offers fully-white-labelled
solutions and powerful customisations to its proprietary technology
stack.
CEVO stage their own tournaments, primarily online, while their
technology and collective expertise power some of the leading
esports events. Their technology offering includes proprietary,
market leading anti-cheat technology and broadcast software that
enables them to automatically integrate statistics from their
tournament platform in real time trigger dynamic in arena visuals
based on live game events.
CEVO's exclusive PROCast platform powers gorgeous scene graphics
and transitions and seamlessly integrate statistics from its
tournament platform in real-time. PROCast can also trigger dynamic
in-arena visual effects based on live game events.
In terms of live events and tournament services, CEVO offers
live esports services for studio events, convention spaces, and
even the first North American $1million Counter Strike: Global
Offensive Major hosted by Major League Gaming, a fully integrated
eSports operator, at the Nationwide Arena, Columbus, Ohio.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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