31 Oct 2013 07:00
Date: | 31 October 2013 |
On behalf of: | NetPlay TV plc (together with its subsidiaries, 'the Group' or 'NetPlay' or 'NetPlayTV')
|
Embargoed until: | 0700hrs |
Not for release, publication or distribution, in whole or in part, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction
NetPlayTV plc
Acquisition of Vernons.com
· Strategic acquisition enhancing NetPlay's scale and product offering
· Significant synergy opportunities will allow quick and efficient integration
· Includes Vernons.com registered user base of 367,000
· Expected to be earnings enhancing within first year
· Cash consideration of £3m funded through NetPlay's existing cash resources
NetPlayTV, the interactive gaming group, is pleased to announce that it has purchased Vernons.com, the e-gaming division of Sportech plc, from Sportech (Alderney) Limited ("Sportech")
Vernons.com operates an online casino, bingo, poker and sports book ("Vernons"). The acquisition includes the brand, customer database and various other gaming assets. The purchase, through the Group's subsidiary NetPlayTV Group Limited in Alderney, is for a total consideration of £3 million, which will be satisfied in cash from NetPlay's cash resources. In addition, Sportech have agreed to contribute £0.1m towards NetPlay's restructuring and integration costs which will be settled in full, in cash, on completion.
The significant synergy opportunities will ensure efficient integration and immediate profitability. Vernons draws the majority of its revenue from online casino, operates on the same software platform as NetPlay, and both parties have operations in Guernsey.
The acquisition provides the Group with further product differentiation, and it will cross market its existing live roulette TV product by offering it to Vernons' customer database post integration. In addition, the Group has signed a memorandum of understanding which will enable it to offer Sportech's football pools to NetPlay's customer base.
Vernons achieved an operating profit in the 12 months ended 31 December 2012 of £1.1 million on total revenue of £4.8 million. In the six months ended 30 June 2013, Vernons made an operating loss of £0.7m on total revenue of £2.8m. The acquisition is deemed a substantial transaction under the AIM rules for companies.
Commenting on the acquisition, Charles Butler, NetPlay said:
"I am very pleased to announce the acquisition of the well-known Vernons.com brand and its customer base. The acquisition, which will be immediately earnings enhancing, fits very well with the Group's core business, adds scale and customer reach, and will be integrated quickly and efficiently to realise the excellent operational synergies.
"This represents the acceleration of our strategy to grow through both organic growth and strategic acquisitions. We look forward to investing further in our proven marketing strategy for Vernons.com alongside our existing brands and continuing to drive value for shareholders."
Enquiries:
NetPlayTV plc | www.NetPlayTVplc.com |
Charles Butler, Chief Executive Officer / Akshay Kumar, Group Financial Controller | Via Redleaf
|
Redleaf Polhill | |
Rebecca Sanders-Hewett / Jenny Bahr / Rachael Brown | Tel: 020 382 4730 netplay@redleafpr.com |
N+1 Singer (Nominated Adviser and Broker) |
Tel: 020 7496 3000 |
Jonny Franklin-Adams / Jennifer Wyllie
Notes to Editors:
About NetPlayTV plc
NetPlayTV plc is admitted to trading on the AIM market of the London Stock Exchange (NPT). NetPlayTV operates a number of interactive gaming services under an Alderney gaming license, including SuperCasino.com and Jackpot247.com. These services can also be viewed 24 hours a day live on Sky Channel 862, six nights a week on ITV1, and every evening on Channel 5.
The Group 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.