Stockholm-based gaming developer LL Lucky Games AB (Lady Luck Games) has signed a Letter of Intent (LOI) with the intention of acquiring London-based game studio ReelNRG for SEK 8.25 million ($873,840), the company announced on Thursday. The move would grant LL Lucky Games licenses in both the UK and Malta, and would add 46 new games to its portfolio.
ReelNRG is a gaming group with companies and operations in the UK and Malta, founded in 2016 by Calvin Kent and Harsharan Gill. Among its co-owners are investors with knowledge in the sector, such as the Klein Group (Cherry, Yggdrasil, Coolbet and the ComeOn group). ReelNRG currently has nine employees, of which eight are developers based in India.
LL Lucky Games AB intends to complete the transaction in April, following the usual due diligence procedure. The parties have agreed that the purchase price of SEK 8.25 million shall consist of 2.5 million newly-issued shares, to be provided in a set-off issue carried out at a share price of SEK 3.30.
“This should be seen in relation to the fact that the Company’s total number of outstanding shares as of today amounts to 48,866,506, which means a dilution of approximately 5%,” a press release explains.
ReelNRG has its own studio in Hyderabad, India, and has developed its own technology, as well as having established a strong distribution network in the UK and other regulated markets under UKGC, MGA and Gibraltar licenses. At present, its portfolio consists of 46 games, and over 30 integrations.
ReelNRG will continue to operate independently following the acquisition, explains LL Lucky Games AB. The Swedish business sees “great synergies” in the form of cross-selling, cost optimization and the opportunity to share technology and licenses in the future from this deal.
“Through the acquisition of ReelNRG, we secure important customer integrations and licenses for the LL portfolio. As merged companies, we run over 100 games and will be able to benefit greatly from both the commercial synergies via cross-selling and also on the cost side,” said Mads V. Jørgensen, CEO of LL Lucky Games.
The executive further described the move as “a big step” for LL Lucky Games, which would permit the developer to “further consolidate” its position as an independent gaming studio with a focus on regulated markets.
“Running the business via own licenses secures larger revenue shares and market reach,” explained Jørgensen. “We look forward to welcoming Calvin and his team together with Klein Group and other shareholders in ReelNRG.”
LL Lucky Games AB designs, develops and markets digital slots to gaming operators, and was founded in Stockholm in 2019 by veterans in game development, with a focus on game experience and design, according to a press release. The company is listed on the Nasdaq First North Growth Market.
“Getting LL Lucky Games as the new owner of ReelNRG marks an important new start for us,” commented Calvin Kent, CEO of ReelNRG. “The additional support from LL Lucky Games will bring us back stronger than ever and enable an improved delivery of our entertainment packages to our clients and their customers.”
The acquisition comes as ReelNRG’s new server infrastructure has now been completed and optimized, ready to be scaled up. Kent further said the company’s team and new owners are “very motivated” to continue running the business as part of LL Lucky Games.
“We are very pleased to be able to continue to support the company as a shareholder in LL Lucky Games. With our vast experience in the industry, having been involved in building great successes such as Cherry, Yggdrasil, Coolbet and the ComeOn group, we are confident that our experience will be a great asset for LL Lucky Games in the continued growth journey “, concluded Fabian Qvist, CIO at Klein Group.