Stride Gaming acquires marketing company 8ball Games
Stride Gaming plc, an online gaming operator, has announced today (September 18) that it has agreed the final earn-out consideration payable in respect of its August 2016 acquisition of 8ball Games Limited (8ball).
This agreed earn-out payment totals to just over £13m, and will be split between the two companies. 8ball’s financial performance has been in line with the Board’s expectations, achieving an amount of £4.18m Adjusted EBITDA (before taxes and interest).
Eitan Boyd, chief executive of Stride Gaming, said: “We are delighted with the performance of 8ball over the period. Its integration into the wider group has begun successfully and we are already seeing synergies materialise.
“Having based the consideration around EBITDA performance we have been able to effectively ensure alignment of incentives. 8ball’s performance since acquisition has clearly demonstrated our capability to acquire and integrate quality businesses.”
The earn-out payment was based on a multiple of six times 8ball’s Adjusted EBITDA for the 12 month period following completion, less the initial consideration which will be settled in mixtures of cash and earn-out shares.
The first £3m of such earn-out payment is to be satisfied by the issue of 1.3m Earnout Shares calculated by reference to August 2016’s placing price of 225 pence.
Moreover, the business has announced the final earn-out consideration payable in respect of its acquisition of the social gaming operation, InfiApps Limited, in August 2015. This has been agreed at around £880m ($1.2bn) and satisfied in cash.
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