MGT Announces Acquisition of Social Gaming Business and Creative Team
Company Expands its Game Offerings and Adds Technology Expertise
HARRISON, N.Y., Nov. 13, 2013
HARRISON, N.Y., Nov. 13, 2013 /PRNewswire/ --MGT Capital Investments, Inc.
(NYSE MKT: MGT) has agreed to acquire Avcom, Inc., a New York City based
gaming studio focused on building social casino games for mobile devices under
the brand Mobile Vegas (http://mobileveg.as). Along with the gaming studio,
Avcom brings a proprietary software platform for secure gaming, mobile
development, and sophisticated analytics, as well as expertise in the areas of
digital marketing and real money gaming. Avcom also brings over 650,000 slot
machine players from its existing instant win game offerings. According to
Robert Ladd, Chief Executive Officer of MGT, "The acquisition of Avcom,
including its leadership team, places MGT in a strong position to capitalize
on the popularity of the social casino industry as well as adding tremendous
value to our other gaming properties. We couldn't be happier with the
exceptional talent that we have added to our team."
The social casino industry has emerged as a significant business in recent
years, with Eilers Research (http://eilersresearch.com) estimating the current
annual market size at $2.0 billion as of 2013. A Morgan Stanley research
report valued the market at $1.7 billion with the potential to triple by 2015.
Social casino has become one of the most profitable social gaming genres,
comparing favorably to other types of games when measuring key revenue and
retention metrics. The success of this genre has been validated by several
high profile acquisitions including IGT's purchase of DoubleDown Interactive
for $500 million and Caesars' acquisition of Slotomania maker Playtika for a
reported $100 million. Social casino games have proven to be lucrative
stand-alone businesses and are also pivotal as a top of the funnel strategy
for acquiring new real money players. According to Superdata Research, an
estimated 170 million people play social casino games worldwide.
Subject to customary closing conditions, including NYSE MKT approval, the
Company expects to issue approximately 491,000 shares of MGT restricted common
stock to acquire full ownership of Avcom. In addition, a contingent payment
of up to an additional 330,000 shares of restricted common stock is payable if
certain revenue metrics are attained within an 18-month period. Closing is
expected within two weeks.
The Avcom team includes aformer IGT lead artist who designed some of the most
popular slot machines on the casino floor including Hexbreaker, and well-known
themed machines based on American Idol, Sex and the City, and the Dark Knight.
Avcom brings core technical talent, with special expertise in security and
lead generation. Mr. Ladd added, "We are very pleased that MGT will introduce
some truly unique slot machine content into the market; it also allows us to
create expansion opportunities within this new channel and our other gaming
Avcom will operate under the name MGT Studios and oversee the Company's online
and mobile gaming properties and digital marketing. Founder Jeremy Avin will
be named General Manager of MGT Studios to lead the effort. Mr. Avin
concluded, "We're thrilled to be joining forces with MGT to focus on bringing
the most innovative social casino games to players worldwide. We're excited
by the opportunities that MGT's broad gaming efforts will create for our
players, employees and investors."
About MGT Capital Investments, Inc.
MGT and its subsidiaries are engaged in the business of acquiring, developing
and monetizing assets in the online and mobile gaming space, as well as the
MGT Gaming, a majority owned subsidiary, owns U.S. Patent Nos.7,892,088 and
8,500,554 relating to certain casino slot machine systems and has filed a
patent infringement lawsuit against WMS Gaming (a subsidiary ofScientific
Games Corporation), and others. The Company also owns a majority interest in
FanTD LLC, the operator of FanThrowdown.com, one of the leading online daily
fantasy sports wagering websites. Another majority owned subsidiary, MGT
Interactive, owns REAL DEAL POKER™, an innovative online poker technology with
a patented card shuffling system, allowing for regulatory transparency and
auditability, and a higher level of realism.
This press release contains forward-looking statements. The words or phrases
"would be," "will allow," "intends to," "will likely result," "are expected
to," "will continue," "is anticipated," "estimate," "project," or similar
expressions are intended to identify "forward-looking statements." MGT's
financial and operational results reflected above should not be construed by
any means as representative of the current or future value of its common
stock. All information set forth in this news release, except historical and
factual information, represents forward-looking statements. This includes all
statements about the Company's plans, beliefs, estimates and expectations.
These statements are based on current estimates and projections, which involve
certain risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. These risks and
uncertainties include issues related to: rapidly changing technology and
evolving standards in the industries in which the Company and its subsidiaries
operate; the ability to obtain sufficient funding to continue operations,
maintain adequate cash flow, profitably exploit new business, license and sign
new agreements; the unpredictable nature of consumer preferences; and other
factors set forth in the Company's most recently filed annual report and
registration statement. Readers are cautioned not to place undue reliance on
these forward-looking statements, which reflect management's analysis only as
of the date hereof. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances that arise
after the date hereof. Readers should carefully review the risks and
uncertainties described in other documents that the Company files from time to
time with the U.S. Securities and Exchange Commission.
SOURCE MGT Capital Investments, Inc.
Contact: MGT Capital Investments, Inc., Robert Traversa, Chief Financial
Officer, 914-630-7431, firstname.lastname@example.org
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