Animoca Brands Corporation Limited (ASX: AB1) has entered into a binding term sheet to sell the company’s mobile casual games portfolio to iCandy Interactive Limited (ASX: ICI).
Pursuant to the sale Animoca Brands will sell 318 of its existing 524 mobile game apps to iCandy, a leading mobile games and entertainment group based in South East Asia, but will continue to offer 206 mobile game apps.
Total sale consideration includes up to A$8 million in upfront and deferred consideration with additional upside from earn-out payments.
Animoca said sale of the mobile games portfolio is consistent with the company’s strategic direction and enables continued development of mid-core games, family and fitness apps and eBooks.
Importantly, the company will retain its strategic partnership relationship with Mattel Inc., which remains unaffected by the deal, and will continue to develop family-focused games and apps based on Mattel’s portfolio of globally recognised brands.
Animoca said it is of the view that there is significant potential upside to the equity based component of the consideration, and will continue to work closely with iCandy as a strategic shareholder to further optimise the Portfolio.
In recent months the company has been exploring pathways to extract value from its extensive portfolio of games, apps and intellectual property.
Following the deal, the company will remain an active developer of apps and game concepts and expects its pipeline to progressively replace the revenues transferred to iCandy in this transaction.
Animoca said the company remains focused on continued growth from its streamlined portfolio and business, and on its objective of driving an optimised and sustainable business going forward.