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- iCandy (ICI) enters a share purchase agreement to acquire 51 per cent of Southeast Asia based games company, Storms, continuing its spending spree in the Asia Pacific region
- Total consideration is $8 million in new shares, which will be paid in ICI shares when the agreement becomes unconditional
- iCandy believes the acquisition will deliver synergetic benefits and align with its strategy to build a globally leading integrated metaverse platform
- Current Storms shareholders will have the option to sell the remaining 49 per cent of the company to iCandy within an agreed period of time
- Shares are trading 10.7 per cent higher today at 15.5 cents each
iCandy (ICI) has entered into a share purchase agreement to acquire 51 per cent of Southeast Asia based games development, publishing and licensing company, Storms.
Total consideration is $8 million in new shares, which will be paid in ICI shares when the agreement becomes unconditional.
The consideration shares will be issued at a price of about 12.6 cents each, which is derived from the seven-day volume-weighted average price. These shares a subject to a 12-month moratorium from the date of issue.
Current Storms shareholders will have the option to sell the remaining 49 per cent of the company to iCandy within an agreed period of time.
Founded in March 2020, Storms is owned by Singtel, AIS, and SK Telecom.
In 2021, the company recorded unaudited revenue of $4.3 million with $7.6 million in cash and cash equivalents.
iCandy believes the acquisition will deliver synergetic benefits and align with its strategy to build a globally leading integrated metaverse platform.
After the acquisition, the company plans to work with new strategic shareholders to bring next-level integrated gaming experiences to digital users that Singtel, SK Telecom and AIS serve.
The deal follows a slew of investments in Asia Pacific gaming investments for the company. Last month the company signed a binding term sheet to acquire a 60 per cent stake in Malaysia based-Gameconomy for MYR1.5 million (A$497,264).
The company also announced in November 2021 that it was to acquire Southeast Asia-based game art and animation specialist Lemon Sky Studios for $44.5 million.
Storms Chief Executive Officer David Yin said the acquisition will be beneficial to both companies.
“We recognise many synergies between Storms and iCandy, with Storms making a great
complementary addition to iCandy’s horizontally-integrated gaming business model,” he said.
“At the same time, this acquisition strengthens Storms’ ability to be a trailblazer in delivering more fun to the gaming community through efficient game development time and at scale.”
The completion of the acquisition is expected by the end of this month.
Shares were trading 10.7 per cent higher today at 15.5 cents each at 11.02 am AEDT.
