Netplay TV PLC Acquisition of Digital Marketing Business (7648V)

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RNS Number : 7648V

Netplay TV PLC

12 August 2015

 
 Date:              12 August 2015 
 On behalf of:      NetPlay TV plc ('the Company') along 
                     with its subsidiaries (the 'Group' 
                     or 'NetPlay' or 'NetPlay TV') 
 Embargoed until: 
  0700hrs 
 

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 GBP3.2m (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 GBP2.6m, Adjusted EBITDA* of GBP0.6m and profit before tax of GBP0.4m 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 GBP2.7 million, to be satisfied by a cash payment from the Group's existing cash resources. Further consideration of GBP0.5 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:

 
NetPlay TV plc                         www.netplaytv.com 
Bjarke Larsen, Chief Executive         Via Redleaf 
 Officer 
 Akshay Kumar, Group Finance Director 
Redleaf Communications                 Tel: [phone] 
                                        4730 
Rebecca Sanders-Hewett                 [e-mail] 
 Susie Hudson 
 
Shore Capital (Nominated Adviser       Tel: [phone] 
 and Broker)                            4090 
Stephane Auton 
 Edward Mansfield 
 
 
 

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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