Stride aims for US success after InfiApps buyout

Stride aims for US success after InfiApps buyout

Friday, July 31, 2015 Totally Gaming
Eitan Boyd expects the deal to spur international growth

Stride Gaming’s share price was up more than 10 per cent this morning (Friday) after the bingo operator announced the acquisition of social gaming company InfiApps.

Stride could pay up to $39.2m (€35.8m) for InfiApps, which it considers a pathway to international markets such as the US, Canada and Australia having seen its flagship game Slot Bonanza downloaded 5.2 million times worldwide.

Stride, which told earlier this year that acquisition is a key part of its strategy, said that the acquisition will be immediately earnings enhancing and that Israel-based InfiApps “offers a strong and profitable presence in the social gaming segment”.

“I am extremely pleased by the Acquisition of InfiApps,” Stride chief executive Eitan Boyd said. “With revenue in the US social gaming industry alone forecast to exceed $12.3bn in 2017, this deal provides us with an opportunity to enter into the rapidly growing mobile social gaming space and will further advance and bolster our growing position in the online gaming sector.

“The addition of InfiApps widens our current portfolio of products and brands and will significantly enhance and diversify our player offering internationally, as well as provide access to new users and new geographies generating significant operational leverage.

“This acquisition, coupled with our strong current trading, as previously reported, leaves the Board to view the prospects for the full year and the future with a high degree of confidence."

InfiApps generated turnover of $13.7m in 2014 – up from $4.6m in 2013, withearnings before interest and tax at $3.6m and profit before tax of $3.4m. InfiApps’ audited profit before tax for the five months ended May 31 was $2.3m.

Stride - which owns brands such as Kitty Bingo and Lucky Pants Bingo - will pay $21.2m in cash on completion of the deal, which could be as early as next week, with the remainder based on the company’s performance over the next two years.

Ronen Kalmanson, chief executive of InfiApps, added: “I am delighted that InfiApps is joining the Stride Gaming family. The coupling of our social gaming platform with their gaming operational expertise will allow for an even better player experience and contribute to the continued growth of the company.”

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