Gaming Realms sells real-money division to focus on development
By Josh White
Date: Friday 22 Feb 2019
(Sharecast News) - Developer, publisher and licensor of mobile real-money and social games Gaming Realms has entered into agreements with River iGaming, a company listed on the Merkur Market of the Oslo Bors, to dispose of its real-money operating subsidiary Bear Group.
The AIM-traded firm said under the agreements, which remained conditional on shareholder and regulatory approval, it would sell the entire issued share capital of Bear Group to River Game Operations, and grant River Technologies a sole perpetual licence to its real money gaming platform, as well as sell its residual 30% stake in River UK Casino to River iGaming.
It said the cash consideration for the transactions would total £11.5m, which would include the settlement of the contracted deferred consideration of £4.2m owed by River UK Casino to the Group, due in October 2020.
"The new UK regulatory environment, together with increases in point of consumption tax, has made it increasingly difficult to operate a sole UK facing casino and real money platform," said Gaming Realms chief executive officer Patrick Southon.
"However, the acquisition of the Slingo brand and intellectual property in 2015 has enabled the company to become a highly-regarded developer and licensor of games in the international gaming market.
"This is a high growth market and one that the board believes can be further developed for the benefit of shareholders."
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