SCi buys Rockpool for £7.7m

News

Stuart O'Brien Feb 26 2007, 9:45am

SCi Entertainment has bought UK mobile developer Rockpool Games in a deal that could eventually be worth £7.7 million.

The acquisition includes Manchester-based Rockpool's sister companies, Ironstone Partners and SoGoPlay.

Consideration for the acquisition is a minimum of £1.2 million increasing to a maximum of £7.7 million, depending on performance levels until 2010.

All three units will now be part of SCi's Eidos New Media division, which has published mobile versions of console hits Tomb Raider, Hitman and Championship Manager, among others. Rockpool MD Paul Gouge stays on in his existing role.

Rockpool itself is best-known for its work on Worms (THQW), MotoGP (THQW), Ronnie O'Sullivan (Player One) and TOCA Race Driver (Codemasters).

Ironstone Partners, meanwhile, is a licensing company that handles multi-platform IP including the Epyx retro video-game back catalogue, Top Trumps, Withit and Commodore. SoGoPlay is a developer and publisher of casual web games.

"The global market for mobile games is set to grow considerably over the next few years," said Jane Cavanagh, CEO of SCi, citing Juniper Research that says the sector will grow from $3 billion in 2006 to $10 billion in 2009.

She added: "Rockpool's breadth of activity, including not only mobile games but casual PC games, fits well with SCi's strategy to expand the company's business in this direction and will strengthen our position in these consistently growing markets."

Revenues for the Rockpool group of companies during the 12 months to 30 June 2006 were £1.58 million, with earnings before interest and tax coming in at £414,000.

The finer details of the deal show that the initial consideration of £1.2 million will be payable as £0.7 million in cash and £0.5 million by the issue of new ordinary shares in SCi.

Up to £6.5 million will then be payable in three tranches of £2 million, £3.5 million and £1 million between 2007 and 2010, dependent on performance. Each deferred consideration will be settled 50 per cent in cash and 50 per cent payable in new ordinary shares in SCi.