Gaming Realms to buy RealNetworks assets; announces share placing

Gaming Realms, which creates and develops interactive next generation online gaming products, said it has conditionally agreed to acquire to acquire the assets for a total consideration of $18m. This is comprised of a $10m cash payment on completion and two tranches of $4m each in deferred consideration, payable 12 and 24 months after completion, respectively.

Up to 50% of each tranche of deferred consideration can, at the election RealNetworks, be satisfied by the issue of ordinary shares in the company.

To fund the acquisition, Gaming Realms has conditionally raised £12.5m through the proposed placing of up to 50m new shares at 25p per share.

The placing will fund up to $14m of the consideration in respect of the acquisition and will also provide ongoing working capital for the enlarged group.

At 12:55, shares were down 13.7% at 26.75p.