In a deal that further consolidates its “position as a truly independent gaming studio,” Swedish slots developer LL Lucky Games (Lady Luck Games) has signed a letter of intent (LOI) to acquire British casino game development company ReelNRG for SEK 8.25m (USD$873,086).
The two parties are in agreement on the price, which will comprise 2.5 million newly issued shares to be issued via set-off issue carried out at a share price of SEK 3.3. (USD$0.35) According to a recent press release, the transaction is to be completed in April this year following the usual due diligence procedures.
In a statement regarding the planned acquisition, Calvin Kent, Chief Executive officer for ReelNRG, said to get LL Lucky Games as their new owner “marks an important start” for them.
“The additional support from LL Lucky Games will bring us back stronger than ever and enable an improved delivery of our entertainment packages to our clients and their customers. Our new server infrastructure has now been completed and optimized and is ready to scale. Our team and our shareholders are super motivated to continue running the business as part of LL Lucky Games.”
Courtesy of the ownership transfer, the Stockholm-based company will enhance its games portfolio with 46 new titles, and secure key licenses in Malta and the United Kingdom, where ReelNRG has companies and operations.
Design consultant Calvin Kent and Harsharan Gill founded the company in 2016, and its co-owners include several “reputable investors” with “extensive knowledge” in the online gaming sector. And in addition to a “strong distribution” in the United Kingdom and other regulated markets under MGA, UKGC and Gibraltar licenses, the London-headquartered company currently has nine employees, eight of which work as developers in India where ReelNRG has its own studio.
Upon completion of the purchase by LL Lucky Games, the firm will reportedly continue to operate independently.
Improved business portfolio:
“Through the acquisition of ReelNRG, we secure important customer integrations and licenses for the LL portfolio. As a merged company, we now operate over 100 games and will be able to derive great mutual benefits from both the commercial synergies via cross-selling, but also on the cost side, read a statement from Mads V. Jørgensen, Chief Executive Officer for LL Lucky Games.
The CEO explains that the acquisition, which is a “big step” for them, “further consolidates our position as a truly independent gaming studio who focus on the regulated markets. To operate via own licenses secures larger revenue shares and market reach.”
Jørgensen said they “look forward to welcoming Calvin and his team together with Klein Group and the other shareholders in ReelNRG.”