Annual Report 2018/19

Note 32 - Business combinations

MAG Games Ltd

As final payment in the acquisition of MAG Games Ltd (formerly Delinquent Interactive Ltd), MAG issued 714 175 shares during November 2017. The new issue of shares was conducted at ratio value and the effect on the group result is accounted for in the profit and loss and the details are in note 6. One of the former owners of MAG Games Ltd, David Amor, is now part of the management team of MAG Interactive.

Issued shares714,175 
Ratio value0.02597418,550
Market value4431,423,700
Share premium18.55 
Not yet registered share capital18,550 
Effect on profit and loss31,405,131.45SEK

Feo media AB

On 7 November 2017 100% of the shares in FEO Media AB were acquired and since the quarter the company is a fully owned subsidiary of the group. FEO Media is the creator of the hugely successful trivia game Quiz Duel. Quiz Duel is published on Google Play and Apple App Store and has its main audience in Germany, where the game is called Quizduell.

The acquisition was made with cash of 85,000 KSEK on 7 November 2017 and an additional payment, valued at 33,755 KSEK was made during in February 2018. The additional payment was determined in a closing balance sheet. The final payment of 15,000 KSEK was made in June 2018 from escrow funds.

A acquisition analysis is presented below.

Paid as of 31 August 2018 
Cash consideration133,755
Total paid cash133,755
Reported amounts on acquired assets and debt 
Share capital50
Result from acquisition23,460
Acquired owners equity12,154
Intangible fixed assets37,600
Deferred tax-7,746

FEO Media has contributed 51,298 KSEK to the Net sales and 10,267 KSEK to EBITDA since acquisition date. If FEO Media would have been included from the start of the year, from September 1 2017, the contribution to Net sales would have been 60,643 KSEK and the contribution to EBITDA would have been 12,628 KSEK. Transaction cost have contributed to the consolidated profit and loss during the period with 976 KSEK. Goodwill corresponding to 68,237 KSEK that arose in the transaction was the result of factors that are attributed to the synergies that the company expects to realize.