17/02/2020, 11:34 CET/CEST: Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014
- Purchase price valuation is 50% below peergroup
- A further increase t0 100% is planned short term
- Former gamigo shareholders will receive shares with a 25 months lock-up period
17, February 2020 – Media and Games Invest plc (“MGI”, ISIN: MT0000005801010101; Symbol: M8G; Basic Board, Frankfurt Stock Exchange) is acquiring 1.05 million gamigo shares, representing approximately 45.5% of the total outstanding shares, thereby increasing its stake in gamigo AG from 53% to 98%. The agreements, which were approved today by the gamigo Supervisory Board and the Board of MGI, were signed today. The transaction is expected to be completed within the coming days. It is planned to also acquire the remaining gamigo shares thereafter.
In the 12-month period from 1 October 2018 to 30 September 2019, gamigo generated net revenues of EUR 56 million and EBITDA of EUR 16 million. Over the past five years, the company has grown by an average of 32% in terms of revenue and 64% in terms of EBITDA.
The purchase price of EUR 16.5 million in cash and up to 18.2 million MGI shares represents a valuation of seven times EBITDA based on the 12-month period ending September 30, 2019. Thus, the purchase price is about 50 percent below the valuation of comparable companies. According to current data from E&Y Corporate Finance, gaming companies achieve an average valuation of 13.5 times EBITDA.
The selling gamigo shareholders will receive the up to 18.2 million new MGI shares in two steps. In return, the company’s share capital will be increased by up to 18.2 million new MGI shares. A lock-up period of around 25 months will apply to approximately 98% of these new shares. The cash portion of the purchase price is financed with a loan from UniCredit Bank in the amount of EUR 10 million at an interest rate of 5.5% p.a. and with free liquidity from MGI. The acquisition of approx. 2% of the gamigo shares is still pending, but negotiations for the purchase of these remaining shares are already underway. Should the negotiations fail, a squeeze-out of these shareholders will be attempted.
About Media and Games Invest plc:
Media and Games Invest plc, (“MGI”), is a fast and profitably growing company in the digital media and games markets, focusing on a “buy, integrate, build & improve” strategy through organic growth and acquisitions of companies and assets. Technology is actively used to create efficiency improvements and competitive advantages within the group. Synergy and integration potentials are important criteria for the expansion of the group. MGI group has performed well over 25 company and asset acquisitions within the last 6 years. The most important criterium for extending the group are synergy and integration potentials. The most important participations include gamigo AG, a fast-growing gaming and media company, ReachHero GmbH, a leading influencer SaaS platform, Applift GmbH, a leading media company specializing in mobile advertising, Pubnative, an SSP platform for mobile advertising and the assets of Verve, a leading North American mobile data platform for location-based programmatic video and display marketing. Media and Games Invest is listed a.o. on the Frankfurt Stock Exchange and on XETRA.
This press release contains possible forward-looking statements that are based on the current assumptions and forecasts of the company management of Media and Games plc or companies associated with it. Various known and unknown risks and uncertainties, as well as other factors, could mean that the actual results, financial circumstances, the development or performance of Media and Games invest plc and the companies associated with it may deviate significantly from the estimations presented here. Neither Media and Games Invest plc nor the companies associated with it are obligated to update this sort of forward-looking statement or adjust them to future results or developments.
Axel Mühlhaus / Dr. Sönke Knop
Telephone: +49 69 9055 05 51
Media and Games Invest plc
Sören Barz, Head of Investor Relations
St. Christopher Street 168
Valletta VLT 1467, Malta