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Enthusiast to press play on a deal with Steel Media
Posted on Thursday, 19 September 2019 12:32
Enthusiast Gaming Holdings, via its subsidiary Enthusiast Gaming Properties, has agreed to buy UK-based mobile gaming and live events company Steel Media for around USD 2.97 million.
The consideration includes an upfront sum of USD 1.97 million in cash upon closing, as well as USD 500,000 in common stock, based on the five-day volume weighted average price of the purchaser’s scrips.
Enthusiast will also offer an earn out of up to USD 500,000, dependent on certain performance-related targets being achieved by Steel Media.
The deal requires the green light from the TSX Venture Exchange and any common shares included as part of the transaction remain subject to a 12-month holding period.
Headquartered in Bath, Steel Media owns and operates 20 mobile gaming websites, namely pocketgamer.com, 148Aapps.com and PC Games Insider.
Pocket Gamer is used across a range of devices such as the iPad, iPad and the Nintendo Switch console and has been featured in multiple sites and printed magazines.
Steel Media also operates more than 25 video game networking events in 11 countries, including key gaming markets in the US and UK.
The acquisition is expected to contribute around CAD 3.00 million (USD 2.26 million) to Enthusiast’s annual revenue.
Furthermore, the buyer will add 20 mobile video gaming media sites to its network, increasing its total platform to over 100 websites.
Menashe Kestenbaum, president of Enthusiast, said: “The acquisition of Steel Media aligns with our growth strategy through M&A [mergers and acquisitions] and also the continued expansion of our events division.”
He added the target’s business-to-business operations will help to create savings across its media and events activities.
Since the start of 2019, there have been 7,127 deals targeting data processing, hosting and related services providers announced worldwide, according to Zephyr, the M&A database published by Bureau van Dijk.
Softbank, in the largest of these to date, sold its 2.8 per cent stake in Cayman Islands-based Alibaba Group Holding for JPY 1,200 billion (USD 11.09 billion).
© Zephus Ltd