Imperus Technologies Gains 24 Million Users
Toronto, ON / ACCESSWIRE / December 9, 2014 / Private equity is pouring into the red hot on-line gambling space. CVC Capital recently purchased majority ownership of Sky Bet for $1.25 billion, while the Blackstone Group invested $1 billion in Amaya's $4.9 billion purchase of PokerStars.
The shares of on-line gamers The Intertain Group (IT.TSX) and Amaya Gaming (AYA.TSX) have risen 290% and $360% respectively in the last 12 months. They now have a combined market cap of $5.1 billion.
The share price of Imperus Technologies (LAB-TSX.V) (ISX-FRANKFURT), a social networking, real money, mobile gaming developer is also on the move - and with a market cap of $30 million it has room to run.
On December 03, 2014 Imperus announced a debt financing agreement with Third Eye Capital for $45 million (US$40 million) and an equity raise through Dundee Capital for an additional $20 million to purchase Diwip Ltd. - an independent supplier of proprietary software with 24 million registered customers.
Diwip supplies games to Facebook, iOS, Android and other social networks. In the last three years its revenues have increased 360% from $7.8 million to $28.3 million with its casino-themed games -- including slots, bingo, Texas hold'em Poker, roulette, blackjack and video poker - under the Best Casino and Slots Club brands.
Imperus has developed a gamblification engine that turns on-line games into real money. For clients operating within fully regulated markets the company offers a turnkey solution including a full commerce application and back office suite.
"This transaction gives us immediate access to a massive user base of well over 20 million people worldwide," stated Imperus President and CEO, Daniel Kajouie in an exclusive interview with Technology Dispatch, "It also provides us ownership of social casino content with a great financial track record, and we feel we can add more value through our distribution channels."
Kajouie describes Imperus as a company at the intersection of social gaming and real money gaming. The strategy has been to build its own platform and create organic growth. That is being achieving through the deployment of Casina, an award winning social gaming software platform.
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"We have the software and the technical know-how to add, create, or port the elements that are currently in the social theater and transform them into real money gaming," stated Kajouie, "So the synergy of this acquisition goes beyond just a purchase of a great technology company with impressive cash flow."
Diwip has established a stable business within Facebook and Desktop environments, generating significant revenues but they've barely touched the surface for mobile applications.
"The timing of the acquisition is advantageous for Imperus shareholders because Diwip has already invested heavily to transition their popular titles to mobile devices," stated Kajouie, "We are the beneficiary of that upside. The investment has already been made. The games are just rolling out this month, being deployed to the App Store and Google Play."
Imperus is purchasing a company with rapidly growing revenues, just as the technology moves to an environment with a hugely expanded addressable market. The company will be reaching millions of new players for the first time.
"The core synergy, the convergence of this acquisition, is about the shift from desktop to mobile," stated Kajouie, "We can monetize the 20 million users in additional ways, including real money gaming within permissible jurisdictions."
For a company generating over $28.3M in revenue, Diwip is a lean technology company headquartered in Tel Aviv, Israel with only 50 employees.
"Diwip develops every aspect of their games in-house," explains Kajouie, "All the technology they use is proprietary, which gives them a significant advantage launching new products, since they don't have to rely on third party resources - which means they don't get delayed."
Kajouie believes that Imperus now has the right elements to expand its business rapidly and become a predominant player in the industry.
"Raising $60 million in a strategic manner, we have aligned ourselves with reputable entities and funds," explains Kajouie, "Both Third Eye Capital and Dundee Capital have done rigorous due diligence on Imperus and this acquisition. These companies are in the business of making good investments for themselves and their clients. So we feel the partnership is solid - based on mutual goals."
Diwip has customers in approximately 220 countries, with the top five (by revenue) being: the US, Canada, Australia, Great Britain and France. Its complete suite of mobile games is expected to be ready for deployment in Q1, 2015
"Over the next 12 months we intend to become one of the larger social casino, social gaming companies," stated Kajouie, "We are going to leverage the combined skill of Imperus and Diwip to transition social gaming and real money applications into the mobile environment."
Imperus is currently trading .51 with a market cap of $29.8 million.
SOURCE: Technology Dispatch