28 Nov 2017 07:07
28 November 2017
GAME Digital PLC
Disposal of Multiplay Digital
GAME Digital plc ("GAME", the "Company" or the "Group"), is pleased to announce the sale of Multiplay (UK) Limited (the owner of Multiplay Digital) to Unity Technologies APS (the "Purchaser") (the "Disposal").
Following the Group's decision to evaluate the strategic options for its digital activities, the Group has entered into an agreement to dispose of Multiplay Digital, for cash consideration of £19.0 million. The consideration is settled by £17.1 million paid on completion (today) and £1.9 million held in escrow for 19 months. The initial £17.1 million consideration is subject to downward adjustments in working capital calculated from the completion accounts.
Multiplay (UK) Limited operates the Group's online game server-hosting business for game developers, as well as a direct Business to Consumer (B2C) game hosting service.
Multiplay (UK) Limited previously comprised of two businesses, Digital and Esports & Events, and on 31 October 2017 Esports & Events trade and assets were transferred to another wholly owned subsidiary of the Group. We remain committed to the ownership and continued development of the Esports & Events business.
Upon completion, the sales proceeds will be retained within the Group. GAME remains focused on the development of its core multichannel retail businesses and its esports and live gaming initiatives. The sale of Multiplay Digital enables the realisation of cash proceeds from a non-cash generating activity that is non-core to the Group.
For the 52 weeks ended 29 July 2017, Multiplay's Digital business reported revenues of £4.5 million and a loss before tax of £0.8 million. Gross assets at 29 July 2017 were £13.0 million.
Martyn Gibbs, GAME Digital Chief Executive Officer, said:
"This transaction is a significant strategic step forward for GAME Digital. By divesting Multiplay Digital we simplify the Group and focus management on accelerating development plans to fully capitalise on the strong growth potential in our exciting and growing esports activities, including BELONG. We now look forward to further developing GAME Digital as we seek to combine multichannel retail, events and esports.
We are delighted to have transacted with such a strong new owner for our Multiplay Digital business and its highly talented team."
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Enquiries:
GAME Digital plc | +44 (0) 1256 784 000 |
Martyn Gibbs | Chief Executive Officer |
Mark Gifford | Chief Financial Officer |
Citigate Dewe Rogerson | |
Jos Bieneman | +44 (0) 207 282 2851 |
Michael Russell
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About GAME Digital plc
Listed on the London Stock Exchange in June 2014, GAME Digital plc is dedicated to delivering an authoritative range of specialist gaming products and services to the gaming communities of the UK and Spain, providing more ways for gamers to enjoy more games and unique gaming experiences, more often. GAME's UK and Spanish retail businesses are the market leaders in those geographical areas, operating a total of over 570 stores across the two territories, a fully integrated omni-channel offer. Through its Esports & Events activities the Group is delivering unparalleled consumer gaming experiences directly, and on behalf of third parties, including its flagship event, Insomnia, the UK's largest gaming festival.