RC365 Holding PLC, a company specialising in payment gateway solutions and IT support, has acquired Hong Kong-based media and advertising services company Mr Meal Productions Limited.
The acquisition was completed for a total consideration of HK$2mln (£200,000), to be satisfied through a combination of cash and equity.
RC365 will pay HK$1mln financed through existing reserves, with the remaining half settled by issuing 91,453 new ordinary shares in RC365 representing 0.07% of the current issued share capital.
Shares will be issued 18 months after the acquisition date, contingent on the condition that key Mr Meal employees are retained for a period of 12 months.
Mr Meal is actively using different artificial intelligence (AI) techniques in order to speed up production efficiency and provide better quality prototypes to its clients.
Mr Meal’s unaudited management accounts for the last financial year reveal revenues of HK$2.6mln and a pre-tax profit of HK$300,000.
Post acquisition, Mr Meal will retain its brand identity and continue to operate independently under the acquisition by RC365.
“RC365 intends to uphold its commitment to providing customers with high-quality and dependable services. The company will continue to develop its payment and marketing services, aiming to establish a competitive edge in the marketplace,” the regulatory release stated.
Chi Kit Law (Michael), RC365’s executive director and chief executive officer, said: "The acquisition of Mr Meal represents another step in the company's development.
“The Mr Meal team are highly experienced with a proven track record in delivering high-quality 3D animation production services. We look forward to working with our new colleagues."