Contagious Gaming, a developer of software solutions for the lottery and gaming sectors, has agreed a deal to acquire UK online bingo provider Chelbis for around CAD$4.05 million (€2.9 million/$3.5 million).
Under the agreement, Toronto-listed Contagious will acquire all of the issued and outstanding securities of Chelbis.
The purchase price, which also includes earn-out consideration equal to net income in both 2015 and 2016, will be paid through a combination of common share of Contagious and cash.
Chelbis is an online bingo provider in the UK and operates a number of websites such as House of Bingo and Gone Bingo, as well as networks such as Best Bingo Network and Fun Bingo Network.
The firm also manages more than 14 white label bingo partner websites across its networks.
“The acquisition of Chelbis is expected to be materially accretive, diversifying our revenue streams, providing consistent cash flow and allowing us to capitalise on synergies which should ultimately increase margins and reduce costs.” Contagious Gaming chief executive officer and director, Peter Glancy, said.
“We look forward to completing the acquisition of Chelbis and welcoming them as Contagious Gaming shareholders.”
Madhu Avalur, chief executive officer of Chelbis, added: “We look forward to completing the acquisition and joining the Contagious Gaming team where we will be able to leverage our resources and create synergies to drive value for shareholders.”
source : www.igamingbusiness.com