ASX-listed Animoca Brands has acquired the entire stake of US-based Gamma Innovations for an upfront consideration of $350,000, according to an announcement.
The acquisition, that saw Animoca Brands acquire stakes of Gabriel Schillinger, Samuel Snyder, and other Gamma shareholders, has been routed through the company’s wholly-owned subsidiary Animoca Brands Limited.
In addition to the acquisition cost, Animoca Brands will doll out an earn-out payment amounting to $2.5 million to Gamma shareholders when Gamma achieves a cumulative revenue milestone of $5 million for the three-year period measured from the effective date of the definitive agreement.
Gamma, based in Los Angeles, is focused on developing the GammaNow computing engine, a desktop application that allows users to leverage their computers’ idle processing power to generate Gamma Points, which are used to acquire in-game rewards for their favorite games.
The firm recently executed a software license and development agreement with Razer, a global lifestyle brand for gamers. The acquisition of Gamma confers to Animoca Brands a commercial relationship with Razer, which represents a potential audience of 60 million users, consisting primarily of gamers.
The acquisition will help Animoca Brands add new audiences and leverage distributed computing power.
To date, Gamma has raised a total of $2.5 million and has generated cumulative gross revenues (before rewards payment and Razer’s revenue share) of about $77,000 since FY 2018.
“The acquisition of Gamma continues the strategic expansion of Animoca Brands. We are immensely looking forward to working with both Gamma and Razer, who powerfully boost our focus on gamers and have a large audience of PC users – representing millions of potential candidates for our blockchain gaming products,” said Yat Siu, co-founder and chairman of Animoca Brands.
ASX-listed gaming company in May was reported to acquire 100 per cent of the equity ownership in French entrepreneur Loic Le Meur-founded event organizing platform Leade.rs for $500,000 (about AUD 710,000).
The firm earlier had acquired Stryking Entertainment, Germany-based creator of fantasy sports game Football-Stars, for $1.1 million (1 million euros).