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Media and Games Invest plc: Closing of the Acquisition of KingsIsle - KingsIsle Represents New 'Strike Zone'

·4-min read

DGAP-News: Media and Games Invest plc / Key word(s): Takeover
08.02.2021 / 11:10
The issuer is solely responsible for the content of this announcement.

Media and Games Invest plc: Closing of the Acquisition of KingsIsle - KingsIsle Represents New "Strike Zone"

08, February 2021 - Media and Games Invest plc (Frankfurt Stock Exchange: M8G), (Nasdaq First North Premier Growth Market: M8G) ("MGI" or the "Company"), has concluded the closing of the Share Purchase and Transfer Agreement with the owners of KingsIsle Entertainment Inc ("KingsIsle") to acquire 100% of the shares of KingsIsle as planned. The transaction is adding the successful massive multiplayer games Wizard101 as well as Pirate101 to the MGI gaming portfolio, two games with very loyal user bases and long-term sustainable revenue streams.

This for MGI transformative transaction will materially increase the size and profitability of the MGI Group, adding about 60% Group EBITDA on a pro forma basis (YTD Q3 2020). KingsIsle's revenue guidance for 2021 is USD 32 million with an expected adjusted EBITDA of USD 21 million (EBITDA Margin: 66%). Taking into account the Earn-Out Consideration, the EV/EBITDA multiple will -depending on KingsIsle's revenue growth in 2021- be within a range of 5.8x - 7.3x. This assessment is based on higher revenues also generating an increased EBITDA and includes the incremental EBITDA that may occur from a higher revenue base should an earn out become payable. The KingsIsle transaction is a further step of MGI's buy-and-build strategy, with MGI's M&A focus also shifting towards larger and EBITDA-positive targets.

"KingsIsle represents our new strikezone. We are very happy that we were able to close the deal so fast and we welcome our new team members. This is a very good start to 2021, as with the KingsIsle deal and our organic growth we can already tick the box on the growth and profitability targets that we announced for 2021. With several game launches and game updates being prepared for 2021 and with a well filled M&A pipeline with very attractive and value-accretive targets, there is more to come." Remco Westermann, CEO of MGI Group, stated.

"We are pleased with the successful closing and, most importantly, that we can now completely focus on the actual work. Since the announcement of the transaction, there have been in-depth dialogues between the teams of KingsIsle and MGI. Everyone in the company is very excited and looking forward to start working together on the various projects around the great games portfolio of KingsIsle. We are also especially happy about the reaction of the players. A real flood of positive reaction reached us after the release, in which players expressed their excitement for updates and extensions as well as the expansion to other devices such as console and mobile. We will deliver." says Jens Knauber, COO of MGI Group.

For further information, please contact:

Sören Barz
Head of Investor Relations
+49 170 376 9571
soeren.barz@mgi.group, info@mgi.group
www.mgi.group

Jenny Rosberg, ROPA, IR contact Stockholm
Phone: +46707472741
Mail: Jenny.rosberg@ropa.se

Axel Mühlhaus / Dr. Sönke Knop, edicto GmbH, IR contact Frankfurt
Phone: +49 69 9055 05 51
Mail: mgi@edicto.de

About Media and Games Invest

Media and Games Invest plc (MGI), is a fast-growing and profitable company operating in the digital games sector with a strong supportive media unit and a focus on North America & EMEA. The company combines organic growth with value-accretive acquisitions, delivering strong and sustainable earnings growth. Since 2014 the MGI Group has successfully acquired more than 30 companies and assets which are integrated onto our platform, exploiting efficiency-enhancing technologies such as the cloud. The Company's shares are listed on Nasdaq First North Premier Growth Market in Stockholm and the Scale segment of the Frankfurt Stock Exchange.

The Company's certified advisor on Nasdaq First North Premier Growth Market is FNCA Sweden AB; info@fnca.se, +46-8-528 00 399.


08.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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, Dusseldorf, Frankfurt (Scale), Munich, Stuttgart, Tradegate Exchange; FNSE

EQS News ID:

1166575


 

End of News

DGAP News Service

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