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sabato 3 ottobre 2015

Empire Global acquires letter of intent to acquire Italian gaming company

Empire Global Corp. is pleased to announce that through its wholly owned subsidiary Multigioco Srl., the Company has signed a confidential non-binding letter of intent (the “LOI”) to acquire all of the issued and outstanding equity interests of a major licensed Italian gaming company. The Company has commenced a 30-day due diligence and the proposed transaction, which is subject to a number of conditions including regulatory approval, financing, and review of the corporate and financial records (including an audit), is expected to close on or before December 31, 2015.

The subject entity is one of the largest gaming operators in Italy with over 2,000 web-shop locations and majority interest in a number of land-based arcade locations generating approximately 200 million Euro in annual non-GAAP turnover, resulting in net profits of approximately 2 million Euro. In addition to gaming locations, the operator recently developed and launched a proprietary brand of online gaming slots which are distributed throughout Italy under a revenue share agreement with a major network provider. The Company has proposed to pay 5 times net profit in a combination of cash and Company common shares. In addition, the founder and director of the acquired entity would join the management and board of the Company as the Company continues its acquisition strategy in Italy.

If the acquisition is completed, the Company anticipates that the combined operations would result in a significant retail distribution network of over 3,700 online and offline neighborhood betting shops in most major gaming regions ranging from Rome (Lazio region) to southern Italy, generating an estimated 300 million Euro in annual non-GAAP gaming turnover and approximately 3 million Euro in profit.

Michele Ciavarella, the Company’s CEO stated, "I am delighted to announce the planned acquisition of this major operator which would result in us becoming a world-class online gaming operator with a deep bench of highly capable industry talent on our management team. Aside from the immediate business expansion and profitability, we believe the up-front synergies will allow us to implement a number of cost saving mechanisms resulting in measurable bottom line improvements.”

Alessandro Marcelli, the Company’s President stated, "The size and scope of their operations will give us a significant presence with one of the largest retail gaming distribution in Italy. We are proactively exploring and identifying additional acquisition opportunities due to the looming consolidation of gaming companies in Italy and moving forward in a timely manner to close on the deals.”

For more information regarding this press release, please see the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 1, 2015.

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