London-listed Gaming Realms has confirmed the sale of Bear Group, its real-money gaming operating subsidiary to River iGaming, whilst further offloading its 30 per cent share in River UK Casino.
The sale was agreed for a cash consideration of £11.5m, which is set to include the settlement of the contracted deferred consideration of £4.2 million owed to Gaming Realms by River UK Casino.
Patrick Southon, chief executive officer of gaming realms, commented: “The new UK regulatory environment, together with increases in point of consumption tax, has made it increasingly difficult to operate a sole UK-facing casino and real money platform; however, the acquisition of the Slingo brand and IP in 2015 has enabled the company to become a highly regarded developer and licensor of games in the international gaming market.
“This is a high growth market and one that the board believes can be further developed for the benefit of shareholders.”
The net consideration generated by the acquisition is set to provide significant capital to develop games, the remote game server and worldwide licensing of its Slingo brand and slingo.com IP, which is due to remain operated by the Bear Group gaming platform via a deal agreed with River iGaming.
The funds generated from the sale will also facilitate the repayment of the £3.5 million loan from JPJ Group Plc (Jackpotjoy) entered into in December 2017.
Fabian Qvist, chairman of the board of River iGaming, praised the acquisition: “I am very satisfied that River has been able to complete this fully funded transaction, securing full control over some very attractive assets.
“By having everything under the same roof and removing all uncertainty regarding financing, we both increase the operational and financial strength of the company”
Kent Staahle, CEO of River iGaming, concluded: “We are very happy to announce this second transaction with GMR. The combination of the Grizzly Platform, and full control of River UK, makes it possible for River to take the step from a mainly B2C oriented company, to become much more B2B focused.
“We can now turn our focus towards further developing the unique brands in River UK, and leverage synergies between our different operations in Europe, both within the B2C and B2B business.”
As part of the agreement, River iGaming will secure Vegas Casino, Casonic, Pocket Fruity, Britain’s Got Talent Games, Spin Genie, X Factor Games and a number of small casinos currently operated by Bear Group.