Netplay TV PLC Acquisition of Digital Marketing Business (7648V)
August 12 2015 - 2:00AM
UK Regulatory
TIDMNPT
RNS Number : 7648V
Netplay TV PLC
12 August 2015
Date: 12 August 2015
On behalf of: NetPlay TV plc ('the Company') along
with its subsidiaries (the 'Group'
or 'NetPlay' or 'NetPlay TV')
Embargoed until:
0700hrs
NetPlay TV plc
Acquisition of Digital Marketing Business
NetPlay TV (AIM: NPT), the interactive gaming company, is
pleased to announce the acquisition of Otherside Inc.
("Otherside"), an online marketing, product development and
technology company, for a total consideration of GBP3.2m (the
"Acquisition").
Strategic rationale for the Acquisition
The Board has been actively looking at the market and
considering various options as part of its stated strategy to
expand the business both organically and through M&A. The Board
believes the acquisition of Otherside will provide NetPlay with a
number of key benefits, including;
-- A robust media platform and specialist staff enabling the
Group to control and tailor its digital marketing strategies.
-- Synergies within the Group's existing gaming operations,
delivering additional traffic to the Group's existing brands as
well as a marketing skillset complimentary to its core
products.
-- The diversification of NetPlay's revenue by maintaining
Otherside's current revenue streams and growing this business by
building on the success of the marketing company to date.
Information on Otherside
Founded in 2008, Otherside specialises in online marketing,
display media and affiliation, underpinned by its proprietary
online marketing platform across a range of sectors. Otherside
generated revenues of GBP2.6m, Adjusted EBITDA* of GBP0.6m and
profit before tax of GBP0.4m in its unaudited financial information
for the financial year ended 31 May 2015. This transaction
constitutes a substantial transaction under the AIM Rules.
Terms of the Acquisition
The consideration for the Acquisition, for the trade and assets
of Otherside, comprises an initial consideration of GBP2.7 million,
to be satisfied by a cash payment from the Group's existing cash
resources. Further consideration of GBP0.5 million is payable over
12 months from date of completion subject to the vendor completing
certain deliverables as well as the continued employment of certain
key individuals.
Bjarke Larsen, Chief Executive Officer of NetPlay TV
commented:
"I am delighted to announce the acquisition of Otherside, which
will strategically align with our core business and support our
digital strategy across the Group's brand portfolio. As previously
stated, NetPlay is in a strong position to pursue appropriate,
value-enhancing M&A activity and we are confident that this
acquisition further strengthens the Group's digital reach. We look
forward to integrating this specialist team into our operations and
capitalising on the numerous commercial and margin-enhancing
opportunities presented by the acquisition."
Enquiries:
NetPlay TV plc www.netplaytv.com
Bjarke Larsen, Chief Executive Via Redleaf
Officer
Akshay Kumar, Group Finance Director
Redleaf Communications Tel: 020 7382
4730
Rebecca Sanders-Hewett netplay@redleafpr.com
Susie Hudson
Shore Capital (Nominated Adviser Tel: 020 7408
and Broker) 4090
Stephane Auton
Edward Mansfield
Notes to Editors:
About NetPlay TV plc
NetPlay TV plc is admitted to trading on the AIM market of the
London Stock Exchange (NPT). The Group operates a number of
interactive gaming services under a UK remote operating license and
Alderney gaming license, including SuperCasino.com, Jackpot247.com
and Vernons.com. Its TV services can also be viewed 24 hours a day
live on Sky Channel 862, and every evening on ITV and Channel
5.
The Company is focused on the delivery of a converged
interactive gaming experience allowing its players to interact with
its games on a variety of platforms, TV, internet, mobile and
tablet from a common integrated wallet.
About OtherSide Inc.
OtherSide Inc. is a team of marketing experts, creative people,
programmers and business professionals whose main goal is to
create, implement and uphold new and better ideas to market
products and services in the Internet.
Founded in 2008, OtherSide Inc. has committed to the newest,
most advanced and best performing solutions for online marketing in
order to maximize exposure, revenues and optimize campaigns for
best ROI.
OtherSide Inc. specializes in all the phases of the online
marketing, including product development, site and funnel building,
infrastructure and technology, design, creativity, media buying and
optimisation, and customer service.
[*] Adjusted EBITDA is non-GAAP company specific measure
This information is provided by RNS
The company news service from the London Stock Exchange
END
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