On Tuesday, Imperus Technologies (LAB:TSXV) announced that it has entered into a binding option agreement to acquire all of the issued and outstanding shares of the social gaming company Akamon Entertainment Millennium, S.L.
Imperus Technologies to acquire Akamon for $25.5 million
The purchase price for the acquisition of Akamon is US$25,578,904, payable in cash and securities of Imperus.
Overall M&A activity on the TSX Venture has been picking up as low interest rates fuel access to cheap money at the same time the exchange bends under the pressure of volatility and weakening global markets.
Earlier this year, in our latest EBook, we outlined 50 past small-cap companies that were led to multi-million and, in some cases, billion dollar buyouts. The key leaders who led these companies to such momentous success are revealed along with the companies they are leading today.
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Imperus Technologies rallies after Akamon deal
Imperus jumped 18.92% on 3.8 million shares Tuesday following the announcement. It gave most of it back on Wednesday, dropping 11%, broke even on Thursday, but resumed its uptrend on Friday. Its shares closed up 17% on the day.
In respect to the acquisition which is expected to add significant revenue to Imperus’ bottom line, the company reported:
“Imperus expects that the financing for the Acquisition will be completed through a combination of the Company’s cash on hand and the remainder through a non-convertible debt facility from a number of current shareholders and insiders of Imperus.”
Click here to read the full press release which includes all the details of the acquisition.
Akamon is now “forecasting to generate annualized revenue of approximately CAD$21.4 million (US$16.2MM) and CAD$6.2MM (US$4.7MM) of adjusted EBITDA in 2015. The baseline acquisition consideration to be paid by Imperus is 5.4x adjusted EBITDA.”
Click here to read more.
This deal provides investors a sense of what companies are actually worth in the market place today and should prove helpful when evaluating comparables in the space.
While Imperus’ has had a horrific year from a price performance standpoint, falling from a high of $0.66 per share to a recent low of $0.095; the company is boasting that “Post the Acquisition, Imperus will immediately elevate to a top-tier social gaming company, with forecasted 2016 revenue of between CAD$70MM to CAD$75MM and adjusted EBITDA of between CAD$25MM to CAD$30MM.“
Click here to read more.
Imperus’ market cap sat at $37 million Friday afternoon.
It was also reported that Akamon’s key management will be retained by Imperus. Akamon possesses some top industry executives, including Alex Cohen (Former head of game design at Quickspin, product lead on premium games at IGT and the author of popular Slot machines such as “The Hangover”). Imperus reported that Alex recently won the E-Gaming Review award for “Rising Software Star of the Year” and “Game of the Year”.
Imperus develops mobile games
Imperus Technologies is the parent company of Diwip, and a developer of social and mobile gaming for PC, Mac, iOS and Android platforms. Diwip designs, develops and distributes its top ranked social casino-themed games within online social networks (such as Facebook) and mobile platforms (such as Android or iPhone).
Acquisitions in the tech and healthcare sector continue to pick up on the TSX Venture, while mergers and consolidations remain the norm in the mining and oil and gas sectors.
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