Developer and publisher Gaming Realms plc announced that they plan to sell a 70% majority stake in its UK online casino business to River UK Casino Limited.
River UK Casino will purchase the stake for a total cash consideration of £23.1m and is conditional upon shareholder approval.
Under the terms of the deal River UK Casino will acquire Spin Genie, Pocket Fruity, Britains Got Talent Games, X Factor Games and associated business..
Once finalised Gaming Realms will hold a 30% stake in the business and the Slingo.com and Slingo brands.
A minimum payment of £8.4 m is expected, half of which is payable on completion of the deal and another half concurrently with the earn-out payment, according to a press statement.
A further maximum payment of £14.7m is payable on an earn-out basis and is expected no later than 31 August 2019.
This sale helps align Gaming Realms strategy of focusing on international licensing and content development and steer them into the B2B market.
“This sale will be transformational for Gaming Realms as it will enable us to focus more of our resources on international licensing and the development of new gaming content, placing us in a stronger position to drive further profitable growth in the future," said Gaming Realms CEO, Patrick Southon.
River UK Casino is a subsidiary of River iGaming plc and has entered into a five year B2B platform and content agreement with Gaming Realms on standard commercial terms; Gaming Realms expect to make up about £1m of annual revenue for the group.
Company shareholders are set to hold a general meeting to authorise the transaction on 18 July 2018.