The owner of the UK company Slingo; Gaming Realms, has announced it’s to sell their real-money business; Bear Group, in a bid to focus their attention on content development and licensing. It emerged today that River iGaming, the Oslo-listed company, has agreed to purchase the company for £11.5 million and the terms and conditions of the acquisition are still the subject for shareholder and regulatory approval, but it pens out an agreement for River iGaming to take over Bear Group. The transaction also shows that the Norwegian gaming company will take over Gaming Realms residential stake of 30% in River UK Casino, this will result in the company being 100% stake-holders, in the gambling company, after purchasing an initial stake of 70% in June 2018.
Licensing revenue reached £1.8 million in 2018 for Gaming Realms, up three times compared to the previous year. Bear Group generated revenue of £8.8 million with an adjusted EBITDA of half a million pounds for the year of 2017. According to the UK gaming group, the sale will allow them to focus their attention obtaining international licenses on their flagship Slingo brand, plus it will pave the way for the development of new gaming titles. The company also revealed that the funds from the sale would also go to repay the extended loan of £3.5 million from JPJ Group Plc. But the deal is not yet signed, sealed or delivered, what with the transaction being subject to approval from the shareholders of both companies, as well as the UK Gambling Commission and Alderney Gambling Control Commission.
Surprisingly, this isn’t the first deal for Gaming Realms. Earlier this year, they agreed terms for a 3-yeart deal with Scientific Games Digital, to develop the Slingo Monopoly game, with Gaming Realms set to develop and publish the new game across its portfolio of Slingo B2B and B2C channels. Gaming Realms CEO Patrick Southon expressed that operating a sole UK-facing casino and real-money platform was increasingly difficult, thanks to a new regulatory environment in the United Kingdom. Southon also went on to say that the acquisition of Slingo and intellectual property in 2015, has allowed his company to “become a highly regarded developer and licensor of games in the international gaming market.”