River UK Casino buy stake from Gaming Realms

Gaming Realms has decided a deal to sell 70% stake in most of its UK online casino B2C business to River UK Casino Limited.

River UK Casino, a subsidiary of River iGaming, will buy the stake for a total cash consideration of up to £23.1m (€26.2m/$30.1m).

The purchase of Pocket Fruity, Spin Genie, Britain’s Got Talent Games, X Factor Games and associated business comes under this agreement.

Gaming Realms will retain a 30% minority stake in the business, as well as the Slingo.com and Slingo brands.

Up to 30 June 2020, the current management team of the business will continue to run River UK Casino.

Patrick Southon, chief executive of Gaming Realms, said: “We believe that 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.”

A minimum payment of £8.4m will be made on completion of the deal, with a further £4.2m payable concurrently with the earnout payment.

An additional maximum cash payment of £14.7m on an earn-out basis will also be payable not later than August 31, 2019.

Gaming Realms said it will use £4.2m of sale proceeds for ongoing development of new gaming content and platform enhancements.

Source: iGamingBusiness