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Gfinity Acquires Digital Sports Media Platform RealSport in GBP 2.4m Shares Deal.

MANews-(C)2009-2018

15 March 2018 - UK-based esports entertainment group Gfinity plc (AIM: GFIN) has acquired the entire issued share capital of fan-oriented digital sports media platform operator RealSM Ltd., for a total consideration for approximately GBP 2.4m (USD 3.35m) to be settled wholly in new shares in Gfinity, the group said.

RealSM is the owner of the fan-oriented digital sports media platform, RealSport (realsport101.com).

Founded in January 2016, RealSport provides sports fans with news from across the globe. RealSport's platform features original content, including news documentaries, podcasts, analysis and opinions.

By positioning itself as the "go-to hub" for mainstream sporting and esports communities, RealSport has rapidly built an online user base of more than .5m active monthly users with esports currently accounting for over 40% of all traffic on its website.

Given its growth trajectory and innovative business plan, the board of Gfinity anticipates scope for significant growth of its user base globally.

This acquisition supports Gfinity's aim to build a large and engaged digital esports community, from the casual fan to the elite professional, all playing, watching and socialising around esports via Gfinityesports.com.

Gfinity's directors believe that by combining RealSport's platform and audience with Gfinity's premium video content and esports technology, there is the potential to significantly accelerate the growth of this global community, providing great synergies with Gfinity's own operations.

This will add value for Gfinity's commercial partners and support the promotion of Gfinity's product portfolio, including the Gfinity Elite Series and the esports programmes that it delivers on behalf of its partners.

Under the terms of the acquisition, Gfinity will integrate RealSport's online real estate into its business operations. Gfinity will also acquire the services of the team of seven key employees including the co-founders, Roei Samuel and Scott Hurst, together with their network of contributors, who have driven the rapid growth in the RealSport digital platform.

Gfinity has acquired the entire issued share capital of RealSport for a total consideration of approximately GBP 2.4m to be satisfied through the issue of 12,307,382 new ordinary shares of 0.1p in the company at an issue price of 19.317p per share, being the average closing mid-market price of ordinary shares on AIM over the last 15 trading days prior to completion of the transaction.

The consideration shares being issued to the two co-founders, which in aggregate will represent approximately 2% of the issued share capital of the company as enlarged by the issue of the consideration shares, may not be sold, transferred or otherwise disposed in the first year following completion and for a further year thereafter may only be sold, transferred or otherwise diposed in accordance with orderly market principles.

All other consideration shares issued to the other vendors of RealSport may only be sold, transferred or otherwise diposed in accordance with orderly market principles during the year.

Country: UK

Sector: Leisure/Arts

Target: RealSport

Buyer: Gfinity plc

Vendor:

Deal size in USD: 3.35m

Type: Corporate Acquisition

Financing: Stock

Status: Closed

Buyer advisor: , ,

Comment:
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Publication:M & A Navigator
Date:Mar 15, 2018
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