Note 32 - Business combinations
MAG Games Ltd
As final payment in the acquisition of MAG Games Ltd (formerly Delinquent Interactive Ltd), MAG issued 714 175 shares during November 2017. The new issue of shares was conducted at ratio value and the effect on the group result is accounted for in the profit and loss and the details are in note 6. One of the former owners of MAG Games Ltd, David Amor, is now part of the management team of MAG Interactive.
| Emission | SEK | |
|---|---|---|
| Issued shares | 714,175 | |
| Ratio value | 0.025974 | 18,550 |
| Market value | 44 | 31,423,700 |
| Share premium | 18.55 | |
| Not yet registered share capital | 18,550 | |
| Effect on profit and loss | 31,405,131.45 | SEK |
Feo media AB
On 7 November 2017 100% of the shares in FEO Media AB were acquired and since the quarter the company is a fully owned subsidiary of the group. FEO Media is the creator of the hugely successful trivia game Quiz Duel. Quiz Duel is published on Google Play and Apple App Store and has its main audience in Germany, where the game is called Quizduell.
The acquisition was made with cash of 85,000 KSEK on 7 November 2017 and an additional payment, valued at 33,755 KSEK was made during in February 2018. The additional payment was determined in a closing balance sheet. The final payment of 15,000 KSEK was made in June 2018 from escrow funds.
A acquisition analysis is presented below.
| Paid as of 31 August 2018 | |
|---|---|
| Cash consideration | 133,755 |
| Total paid cash | 133,755 |
| Reported amounts on acquired assets and debt | |
| Share capital | 50 |
| Result from acquisition | 23,460 |
| Acquired owners equity | 12,154 |
| Intangible fixed assets | 37,600 |
| Deferred tax | -7,746 |
| Total | 65,518 |
| Goodwill | 68,237 |
FEO Media has contributed 51,298 KSEK to the Net sales and 10,267 KSEK to EBITDA since acquisition date. If FEO Media would have been included from the start of the year, from September 1 2017, the contribution to Net sales would have been 60,643 KSEK and the contribution to EBITDA would have been 12,628 KSEK. Transaction cost have contributed to the consolidated profit and loss during the period with 976 KSEK. Goodwill corresponding to 68,237 KSEK that arose in the transaction was the result of factors that are attributed to the synergies that the company expects to realize.