GAME Digital acquires British festival organiser Multiplay

The video game seller acquired the entire issued share capital of Multiplay for a total consideration of £20m, comprising £12.6m to be paid in cash on completion and £7.4m payable in deferred cash and shares over the next three years.

Game Digital, which warned on profits in January and faces relegation from the FTSE 250, made the announcement to shareholders on Monday, stating the move was a "strategically important step" for the company.

Multiplay has organised more than 150 gaming events in the UK and internationally, including its flagship Insomnia festival. The company also provides online multiplayer gaming services for PC gamers and works with leading game-developers such as Mojang, Nexon, Electronic Arts and Ubisoft.

In 2014, Multiplay's Insomnia event attracted more than 67,000 visitors, 1.4m users logging on to the official Insomnia website and 45m media impressions recorded through Twitch, YouTube and Flickr. The festival combines stage events, gaming areas, competitions and a retail expo, plus a chance to meet YouTubers, Minecrafters and pro players.

Martyn Gibbs, chief executive of Game Digital said the world of live events, eSports and multiplayer gaming is growing rapidly and one that the company have been looking to enter for some time.

"By acquiring Multiplay we are benefitting from nearly two decades of experience, during which time Multiplay has built an exceptional reputation and leading position in its markets,” added Gibbs.