SINGAPORE - Mainboard-listed YuuZoo Corporation announced on Monday that it had acquired all of Infocomm Asia Holdings (IAH), a Singapore-headquartered gaming and game distribution company, which is the regional distributor of the world's best-selling game Grand Theft Auto.
The acquisition, which is subject to Singapore Exchange approval, was done through the issuance of 50 million YuuZoo shares at $1 per share. The effective consideration paid by YuuZoo for IAH is $18 million, given the last traded price of YuuZoo shares on the SGX at 0.36 cents.
At $1 per share, the enlarged YuuZoo Group is valued at $680 million.
YuuZoo said IAH will operate as a subsidiary and retain its brand.
IAH, over the last eight years, has built a leading regional gaming business, with over 35 million registered users across seven Southeast Asian markets and revenues in excess of US$25 miilion per year for its last two fiscal years.
Its publishing partners include Vietnamese government-owned VTC Online and Thailand's True Digital, a subsidiary of the communications conglomerate True Corporation.
IAH has regional rights to distribute and/or publish popular game titles, including Grand Theft Auto, Counterstrike Online and NBA 2K14.
Said YuuZoo chairman & CEO Thomas Zilliacus: "The acquisition of IAH will add value to YuuZoo in many ways. Games are a key revenue generator in social networking worldwide. Games provide major stickiness to social media. IAH's partners in Vietnam and Thailand, VTC and True Corporation, are the kind of leading TV and media companies YuuZoo wants to partner with."
He added: "The founder and CEO of IAH, Roland Ong, before launching IAH built a very successful game franchise in China. His contacts and network in China hold significant value in a market where YuuZoo is in discussions with multiple clients and recently has signed a key partnership with China's second largest TV network."
Said the founder and CEO of IAH, Roland Ong: "We believe strongly in the multiplier effect of combining Yuuzoo's unique social e-commerce strategy with our gamer's network, which is why we have accepted to receive full payment in YuuZoo shares at a significant premium to the current stock price. We believe the huge base of gamers IAH has built will be keen to join the targeted social e-commerce networks YuuZoo offers to consumers."