Emerge Gaming to acquire a profitable VAS business (Mobimedia)

Emerge Gaming to acquire a profitable VAS business (Mobimedia)

SYDNEY, AUSTRALIA: Emerge Gaming Limited (ASX: EM1) has entered into an agreement to acquire a profitable VAS business (Mobimedia) from Australian Content Management Pty Ltd for a consideration of A$650,000.

The acquisition of this VAS business expands the Company’s MNO partnerships into new Indian Ocean countries and territories consistent with its overall MNO (B2B2C) Strategy.

Emerge has a strongly established partnership with MTN South Africa with products MTN Arena (competitive social gaming platform) and MTN Arena 5G (game streaming platform) currently in operation.

The new VAS business has partnerships with:

• Telikom Limited (Papua New Guinea);

• Bluesky Communications (American Samoa);

• Tonga Communications Corporation (Tonga); and

• Solomons Islands Telekom (Solomon Islands),

The VAS business (Mobimedia) also creates a number of new revenue streams which are complementary to Emerge Gaming’s existing gaming and streaming technology. The VAS business products and content also have the potential to be introduced to countries where the MTN Africa Group operates.

Emerge Gaming has established itself as an experienced mobile gaming company with proven technology and demonstrated marketing and content production capabilities. Emerge’s established prize distribution logistics and customer relationship management systems underpin its platform operations with a proven distribution reach of 160 countries.

The results of the MTN Arena platform in South Africa acquiring 1.3 million subscribers since launch has provided the Company with the opportunity for further extrapolation of this commercial model with offerings to the remaining countries where MTN services more than 240 million subscribers.

The acquisition of this VAS business (Mobimedia) integrates into Emerge a dedicated team of management and staff experienced in expanding and servicing MNO partnerships who are seeking to grow the business by targeting further expansion opportunities.

Subject to the successful closing of the transaction, Mr. Todd Emanuelli, the current CEO of Mobimedia, will be appointed as the CEO of a new subsidiary, StreamPlay Studio Pacific Pty Ltd, to be incorporated by Emerge to undertake the VAS business. Mr. Emanuelli is an experienced telco emerging markets executive with more than 15 years of experience across the Far East, Middle East and Pacific Islands. Mr Emanuelli and his team are located in Melbourne with support from a development office in Fiji.

Commenting on the acquisition, Chairman Bert Mondello noted: “We are pleased to be entering this next phase of the Company’s development. This deal diversifies our offering outside of our primary MTN relationship and outside Africa and brings in an entirely new management and operations team with capability and expertise, that are Australian based.

Crucially, this new team, led by Todd, is incentivised to deliver new partnerships and grow the Company’s offering sustainably and profitability. We also expect to see significant improvements in revenue and profitability from synergies once the Emerge tech stack is introduced and incorporated into existing partner relationships. We also expect to leverage Todd’s expertise and guidance in enhancing our partnership with MTN and other MNOs Emerge have been targeting.”

Todd Emanuelli, the designated CEO of the newly incorporated StreamPlay Studio Pacific Pty Ltd added: “My team and I are so excited to join the Emerge group. We are bullish on what we will be able to accomplish with significantly expanded resources and a tech stack with clear value to our partners. The prospect of expanding our combined product offerings into new territories will be a catalyst for the group to deliver value for shareholders.”

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