E-sports entertainment group Gfinity PLC (LON:GFIN) has snapped up RealSM, the company behind the fan-orientated sports media platform, RealSport.
Gfinity is paying around £2.4mln for the firm, with the consideration to be settled through the issue to the vendors of 12.3mln Gfinity shares at an assumed issue price of 19.317p each.
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Founded in January 2016, RealSport provides sports fans with all the latest news from across the globe. RealSport's platform features original content, including news documentaries, podcasts, analysis and opinions.
Gfinity intends to combine RealSport’s platform with Gfinity’s premium video content and e-sports technology and said it sees scope for significant growth in RealSport’s user base across the globe.
Nigel Wray, who holds a 14% stake in Gfinity, also has a holding in RealSport; the transaction will see his stake rise to around 13.9%.
“RealSport has done a great job of building a ‘go-to’ hub for the e-sports community. They have a very talented team whose expertise in building a digital community will be very valuable to Gfinity,” said Neville Upton, the chief executive officer of Gfinity.
“This deal will further help Gfinity continue to drive awareness and engagement in Gfinity and Elite Series brands. We believe this will accelerate Gfinity's plans to monetise our digital assets and will greatly increase the value of our proposition to our prospective commercial partners," Upton said.
Shares in Gfinity were down 1.6% at 18.7p in lunchtime trading.