MGI – Media and Games Invest SE
Media and Games Invest (MGI) acquires freenet digital GmbH as part of a strategic partnership with freenet AG
Media and Games Invest plc / Key word(s): Takeover/Alliance Media and Games Invest (MGI) acquires freenet digital GmbH as part of a strategic partnership with freenet AG 28. August 2020 – Media and Games Invest plc (“MGI”, ISIN: MT000000580101; Symbol: M8G) today agreed to acquire freenet digital GmbH, a subsidiary of freenet AG, as part of a strategic partnership with Freenet AG. freenet digital GmbH was founded in 2000 and bundles the digital mobile entertainment offerings of freenet AG. It distributes over 1,500 mobile games via its own platforms, as well as other products in the digital entertainment sector. With the acquisition of freenet digital GmbH, Media and Games Invest strengthens its mobile games offering and expands into the fastest growing segment of the gaming industry. The purchase price for freenet digital GmbH is in the upper single-digit million range. The purchase price will be paid in shares of Media and Games Invest and cash. The closing is planned for 30 September 2020. In addition to the acquisition of the gaming and entertainment division, MGI and freenet AG today agreed on a strategic cooperation in the media sector, in which MGI will support freenet AG in the acquisition of new customers. On an annual basis, management of MGI expects the acquisition to generate additional revenues of EUR 13-15 million and EBITDA of EUR 2-3 million for MGI, plus additional revenues and earnings from the media cooperation are expected. Information and Explanation of the Issuer to this News: Explanatory section MGI’s gaming segment currently generates only 1% of its revenues from mobile games, though mobile accounts for more than 50% of global gaming market revenues, with a year-on-year market growth rate of 15%. While PC and console games remain MGI’s core business and continue to grow in the global market, MGI is working on increasing its revenue share of mobile games in its own gaming segment to participate in the growth of this fast growing market. MGI has laid the foundation for customer acquisition for mobile games business with the establishment of the Verve Group. Through the Verve, AppLift and PubNative acquisitions in the media segment, MGI has gained extensive expertise in mobile advertising. In addition, MGI now has worldwide and cost-effective access to mobile traffic due to purchasing advantages. This gives MGI a clear advantage in the highly competitive mobile games market and enables the company to leverage its extensive media reach for efficient user acquisition and to increase mobile games revenues in a cost-efficient way. With the acquisition of freenet digital GmbH, MGI significantly expands its portfolio of mobile games. In addition to further acquisitions in the mobile games sector, MGI also plans to convert parts of its existing games portfolio, such as Desert Operations, for mobile devices. The combination of a strong market position in the media sector and a broadly diversified games portfolio has now created the prerequisites to build up an extensive mobile games portfolio through organic growth and M&A, which will contribute substantially to MGI’s earnings in the short term. In addition to the acquisition of the gaming and mobile entertainment division freenet digital, MGI and freenet AG today agreed to cooperate strategically in the media sector. In this context, MGI will in future support freenet AG in the online and mobile marketing of their offering. The cooperation between MGI’s media division and freenet AG is expected to lead to sales and earnings synergies for both parties. In addition, it is planned that Antonius Fromme, CCE of freenet AG, shall join the Board of Directors of MGI to further strengthen the strategic cooperation. Disclaimer Press contact: Issuer
28-Aug-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | Media and Games Invest plc |
St. Christopher Street 168 | |
VLT 1467 Valletta | |
Malta | |
Phone: | +356 21 22 7553 |
Fax: | +356 21 22 7667 |
E-mail: | info@mgi.group |
Internet: | www.mgi.group |
ISIN: | MT0000580101 |
WKN: | A1JGT0 |
Listed: | Regulated Unofficial Market in Berlin, Frankfurt (Scale), Tradegate Exchange |
EQS News ID: | 1124471 |
End of Announcement | DGAP News Service |