Stride agrees final earn-out from 8ball acquisition
Stride Gaming
149.00p
16:09 04/10/19
Online gaming operator Stride Gaming announced on Monday that it has agreed the final earn-out consideration payable in respect of its August 2016 acquisition of 8ball Games.
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The AIM-traded company said 8ball's financial performance had been in line with the board's expectations, achieving an unaudited adjusted EBITDA of £4.18m for the period to 31 August.
It said the agreed final earn out consideration was £13.09m.
The earnout payment would be split as previously agreed, with £9.06m satisfied by the issue of 4,117,482 new ordinary shares of 0.01p each and £4.04m payable in cash.
In addition, the company was pleased to announce that the final earn out consideration payable in respect of its acquisition of the social gaming operation, InfiApps in August 2015, had been agreed at $1.2m and satisfied in cash.
“We are delighted with the performance of 8ball over the period,” said Stride chief executive Eitan Boyd.
“Its integration into the wider group has begun successfully and we are already seeing synergies materialise.”
Boyd said that, having based the consideration around EBITDA performance, Stride’s board had been able to “effectively ensure” alignment of incentives.
“8ball's performance since acquisition has clearly demonstrated our capability to acquire and integrate quality businesses, in line with the group's growth strategy.”