Sumo Group PLC - Sheffield-based video game creator - Signs contract to acquire Pipeworks Inc, a US video games developer based in Eugene, Oregon, for an up to USD99.5 million enterprise value with an initial consideration of USD59.5 million. Of that, USD35 million will be satisfied from existing cash resources and USD23.5 million via the issue of new Sumo equity. Pipeworks standalone revenue in 2019 was USD14.8 million with underlying adjusted earnings before interest, tax, depreciation, and amortisation of USD2.4 million.
Separately, Sumo reports more than doubling of pretax profit in the six months ended June 30 to GBP2.8 million from GBP1.3 million as revenue jumps 26% to GBP26.3 million from GP20.8 million.
CEO Carl Cavers: "With strong visibility, we are confident that the group is on track to deliver adjusted Ebitda for FY 20 at least in line with consensus market expectations. The strength of our underlying market and the quality and depth of our business development pipeline make us particularly positive about the outlook for FY 21, and we see opportunities for strong growth in our business. "
Current stock price: 218.98 pence; up 11% on Wednesday
Year-to-date change: up 21%
By Anna Farley; annafarley@alliancenews.com
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