The Acquisition advances LEAF's growth through M&A, executing on a core pillar of LEAF's strategy. The Company previously acquired independent gaming studios LDRLY and East Side Games ("ESG") in 2020 and 2021 respectively. The acquisition of TSG adds another development studio with a strong track record of success and expertise utilizing the IdleKit technology platform for games such as Archer: Danger Phone, which was nominated for Best Mobile Game at the 2021 Canadian Game Awards.
Acquisition Highlights
- Adds highly skilled team of ~50 across 2 TSG studios (
Vancouver andMinsk ), expanding LEAF's mobile game development capacity. - Proven success as an IdleKit development partner on Archer: Danger Phone published by LEAF studio, ESG.
- LEAF will initially acquire 20% of TSG in exchange for an initial investment of up to
$3.0 million which will be used by TSG to develop four new game titles with 2 of the titles scheduled for world-wide launch in second half of 2021 that will be published by ESG. - The remaining ownership interest will be acquired in up to 2 tranches based on revenue targets as set out in previous acquisition news releases on
March 9th, 2021 . With achievement of revenue targets, LEAF anticipates that it would generate approximately$60 million in revenue on an annualized basis*
*there can be no assurance or guarantee that such revenue targets will be achieved or that such annualized revenue thresholds will be met, whether in whole or in part. |
"We're pleased to formalize our previously announced acquisition of Truly Social Games. TSG will add a very talented group of mobile game developers to our group of studios and allow us to increase our development capacity as we execute on our growth strategy," said
"The mobile gaming industry is witnessing rapid growth and globalization. We have joined the LEAF group as we see a very strong strategic fit with our culture and long-term vision. By joining
Any LEAF Shares that are issued in the events described previous acquisition news releases on March 9th, 2021 will be at a price per share equal to the greater of: (A)
The Initial Purchase consideration is intended to be financed with current cash balances.
Concurrent with the completion of the Initial Purchase, a nominee of LEAF shall be appointed to TSG's board of directors.
Completion of the transactions described above are subject to numerous conditions, including but not limited to the receipt of all necessary prior approvals, including that of the TSX as required.
ABOUT TRULY SOCIAL GAMES
Truly Social Games is a dynamic group of folks, with offices in
ABOUT LEAF
We are headquartered in
Additional information about
Forward Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. In particular, the Company cautions that the completion of the proposed transactions cannot be predicted with certainty, and there can be no assurance at this time that all required approvals and consents to effect the proposed transactions will be obtained in the manner noted above or at all. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
SOURCE
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