River iGaming acquires Gaming Realms’ Bear Group
News on 23 Feb 2019
News on 23 Feb 2019
Gaming Realms plc has agreed the sale of the entire issued share capital of its real-money operating subsidiary Bear Group Limited to River Game Operations Limited (RGO) for a GBP 11.5 million consideration.
The deal includes a sole perpetual license granted to River Technologies Limited (RTL, also a River Group Company) to the Group’s real money gaming platform, as well as the residual 30 percent stake in River UK Casino Limited (RUK) to River iGaming.
The consideration includes settlement of the contracted deferred consideration of GBP 4.2 million owed by RUK to Gaming Realms born from River iGaming’s (RiG) original deal to acquire a 70 percent stake in RUK back in June 2018 (see previous reports). That deal included the Pocket Fruity, Spin Genie, Britain’s Got Talent Games, X Factor Games and the associated businesses.
Gaming Realms will allocate the GBP 11.5 million consideration towards the provision of sufficient working capital for the development of games, the remote game server and worldwide licensing. In addition, it will provide resources for the repayment of a GBP 3.5 million loan from JPJ Group Plc (entered into in December 2017).
Gaming Realms will retain the Slingo brand and slingo.com IP, and shall, on completion, enter into a white label agreement with River iGaming ensuring that the Group’s slingo.com brand can continue to operate on the Bear Group gaming platform.
The Transaction is subject to the approval of both Gaming Realms’ and River iGaming’s shareholders, as well as the UK and Alderney Gambling Commissions, and certain other third party consents. It is expected to complete in Q2 2019.
Patrick Southon, chief executive officer of Gaming Realms:
“The new UK regulatory environment, together with increases in Point of Consumption tax, has made it increasingly difficult to operate a sole UK facing casino and real money platform. However, the acquisition of the Slingo brand and IP in 2015 has enabled the Company to become a highly regarded developer and licensor of games in the international gaming market. This is a high growth market and one that the Board believes can be further developed for the benefit of shareholders.”
