Brief: Stillfront Group Buys Game Labs Inc.

Stillfront AB (publ)

07/05/2021 07:39

May 7 (Reuters) - Stillfront Group AB (publ)  SFRG.ST :
    * STILLFRONT GROUP ACQUIRES GAME LABS INC. AND FURTHER
STRENGTHENS
ITS PORTFOLIO OF STRATEGY AND ACTION GAMES AND PRESENTS FY 2021
GUIDANCE FOR THE ACQUISITION
    * ENTERED INTO AN AGREEMENT TO ACQUIRE 100% OF SHARES IN
GAME LABS
INC, A DELAWARE CORPORATION
    * UPFRONT CONSIDERATION, PAYABLE UPON COMPLETION OF
ACQUISITION OF
100% OF SHARES IN GAME LABS, AMOUNTS TO USD 32.5 MILLION ON A
CASH AND DEBT FREE BASIS
    * IN ADDITION, SELLERS MAY RECEIVE AN EARN-OUT PAYMENT FOR
EACH OF
FINANCIAL YEARS 2021, 2022 AND 2023 DEPENDING ON EBIT
DEVELOPMENT OF GAME LABS
    * GAME LABS IS EXPECTED TO GENERATE PROFORMA IFRS NET
REVENUE OF
APPROXIMATELY SEK 70-80 MILLION AND AN ADJUSTED PROFORMA IFRS
EBIT MARGIN OF APPROXIMATELY 50-55 PERCENT FOR FULL YEAR 2021
    * TRANSACTION WILL RESULT IN AN ATTRACTIVE EARNINGS MULTIPLE
FOR
STILLFRONT IN LINE WITH PREVIOUS ACQUISITIONS
    * EARN-OUT PAYMENT WILL NOT EXCEED USD 30 MILLION IN
AGGREGATE
    * EARN-OUT CONSIDERATION WILL BE PAYABLE 70 PERCENT IN CASH
AND 30
PERCENT IN NEWLY ISSUED SHARES IN STILLFRONT TO SELLERS DURING
SUBSEQUENT YEAR OF RESPECTIVE EARN-OUT PERIOD

Source text for Eikon:  ID:nMFN3Ky2pG 
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