Gaming software and platform provider Isis Lab Corporation has completed the acquisition of Toronto-based casual games developer Vast Studios for CAD$1.7m.
Isis has agreed to pay an adjusted purchase price of $1.7m, subject to further adjustment in certain circumstances, for all of the issued and outstanding shares of Vast. The company has paid $0.6m in cash and $0.6m by the issuance of 1,279,290 common shares of ISIS at a price of $0.469 per share.
Isis will make two additional payments to the vendors on January 21st 2015 and July 21st 2015, with each payment comprised in aggregate of $50,000 payable in cash and $50,000 satisfied by the issuance of common shares.
In addition, on a date no later than January 21st 2016, the company will pay the vendors an earn-out payment of up to $0.3m, which is subject to reduction in the event the annualized revenue attributable to Vast's business for the twelve month period after closing falls below a certain target.
“We are delighted to have Vast join the Isis organization,” said Daniel Kajouie, chairman, president and CEO of Isis. “Vast, over the years has demonstrated its capability to produce profitable games for its publishers.
“At Isis, we believe the future of gaming will reside at the intersection of social and real money games. With mobile gaming expanding more rapidly than ever, the acquisition of Vast will fuel our ability to expand development into this growing sector and provide proprietary games to our customers.”
Based in Toronto, Vast Studios is a leading video game developer for the casual mobile and PC markets. Established in 2007, Vast has developed and released a substantial library of titles, including the likes of Jenguu, Fashionista, Aquapolis, as well as the Strange Discoveries, Nightfall Mysteries and Shattered Minds series of games. Games are available on PC, Mac, iOS and Android platforms across ten languages.
Following the acquisition, Vast has become a wholly-owned subsidiary of Isis, which recently launched its flagship product, the social network for real-money games ISIS Friends.
Vast’s three founders Hamed Abbasi, Jon Caculovic and Serguei Kloubkov will continue is their roles as president, chief operating officer and chief technology officer respectively. Kajouie will take over as CEO of Vast, with the developer’s board of directors replaced by Kajouie, Tito Gandhi and Neil Said, all directors or officers of Isis.
“We're extremely excited to join the growing team at ISIS,” said Abbasi. “Our mission to create the best casual games in the industry will continue with ISIS. We're delighted to combine our many years of development experience with Isis' deep understanding of the social gaming market.”
Shares in Isis Lab Corporation (CVE:LAB) closed yesterday at $0.40 per share in Toronto.