Announcement
Netplay TV PLC : Acquisition of Digital Marketing Business
RNS Number : 7648V
Netplay TV PLC
12 August 2015
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Date: |
12 August 2015 |
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On behalf of: |
NetPlay TV plc ('the Company') along with its subsidiaries (the 'Group' or 'NetPlay' or 'NetPlay TV') |
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Embargoed until: 0700hrs |
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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 £3.2m (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 £2.6m, Adjusted EBITDA* of £0.6m and profit before tax of £0.4m 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 £2.7 million, to be satisfied by a cash payment from the Group's existing cash resources. Further consideration of £0.5 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:
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NetPlay TV plc |
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Bjarke Larsen, Chief Executive Officer Akshay Kumar, Group Finance Director
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Via Redleaf |
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Redleaf Communications |
Tel: 020 7382 4730 |
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Rebecca Sanders-Hewett Susie Hudson
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Shore Capital (Nominated Adviser and Broker) |
Tel: 020 7408 4090 |
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Stephane Auton Edward Mansfield
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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
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