PCG Entertainment has sealed its acquisition of Center Point Development Corporation
The AIM quoted firm, which was suspended in February when it struck the deal initially, has now resumed trading.
PCG says the cash flows from CPDC should be transformative for the group, as it will bring substantial free cash flow.
The acquired business has shown strong growth since 2013, PCG highlights, as revenues increased from US$1.3mln to US$9.4mln by 2014, and it made a US$2.3mln profit last year.
CPDC’s management expect to ‘steady’ growth in the current year, PCG added.
“We will continue to focus on growing the group's businesses organically and the anticipated cashflow from CDPC will enable us to accelerate this growth through strategic acquisitions,” said chief executive Nick Bryant.
“The merger also increases the number of territories in which the group has a presence and enables us to benefit from the gaming experience, local knowledge and strong relationships the CDPC management has built up in the region amongst major gaming software distributors and agents.
“We hope that the enlarged group will be well placed to take advantage of a growing market."
PCG agreed in February an option to acquire the business for US$20mln, in either cash or shares.
It has now confirmed that it will pay an initial consideration of US$9.59mln, in shares, and a further US$10mln worth of shares may be payable in the future depending on CDPC’s performance over the next two years.
That maximum contingent payment will be payable if the unit achieves a US$29.13mln cumulative net profit, whereas no further payment will be due if cumulative net profit is below US$14.56mln.
CPDC gives customers in Asia access to established third-party gaming content. Its agency deals cover China, Taiwan, Macao, Hong Kong, Vietnam, Malaysia and Thailand.