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TransGaming Inc. (TSX VENTURE: TNG), the global leader in the multiplatform deployment of interactive entertainment, today announced the strategic acquisition of the Interactive TV (iTV) & Connected TV division of Oberon Media, an acclaimed operator of game services and a world-renowned creator and distributor of games for the interactive and connected TV market.
The acquisition, which is expected to close January 6th 2012, will bring TransGaming a new recurring multi-million dollar annual revenue stream generated through distribution agreements with a number of leading Smart TV manufacturers as well as an extensive network of cable, satellite and iTV service providers. This network of service providers includes DISH Network and DIRECTV in North America and Reliance Digital TV and AirTel Digital TV, through 3rd party distribution agreements in the Indo-Pacific region, giving TransGaming reach to over 50 million households resulting in one of the largest connected TV distribution footprints in the world.
The addition of Oberon Media's extensive games catalog adds over 100 video game titles to TransGaming's GameTree™ TV portfolio, giving it the most comprehensive content library available for Smart TV. The Oberon Media licenses include some of the world's most successful and recognizable game franchises ranging from Tetris® to a variety of iconic brands from Hasbro.
The aggregate purchase price of the assets is approximately US $7.0 million, consisting of US $3.0 million on closing, US $2.0 million in earn outs based on the achievement of revenue thresholds and the issuance of 4 million shares of TransGaming.
"With the strategic acquisition of Oberon Media's iTV & Connected TV division, TransGaming cements its position as the clear leader in the delivery of video games to the connected living room," commented Vikas Gupta, CEO & President of TransGaming. "We now have the ability to reach the hundreds of millions of set-top boxes currently deployed in living rooms globally, while also defining a clear migration path for service providers to bring high quality gaming to their subscribers as they deploy next generation devices. We have immediately increased our total addressable market for GameTree TV and have created a compelling value proposition unmatched by any other company in this space."