Hong Kong-listed gaming operator Ourgame has gone on a nearly $66m acquisition spree to extend its mobile gaming reach.
On Wednesday, Ourgame International Holdings Ltd issued a trio of filings via the Hong Kong Stock Exchange detailing its acquisition of three mainland China companies that specialize in mobile mahjong, poker, card and board games.
In the biggest transaction, Ourgame says it paid RMB 220m (US$34.2m) in cash and stock for 100% of Nanjing Haoyun Meicheng Electronics Technology Co., Ltd, which will become a wholly owned Ourgame subsidiary.
The Nanjing firm operates “20 to 30 China regional card and board games, such as mahjong, poker and other card and board game products” across six Chinese provinces, and reported an after-tax profit of RMB 28.4m in 2017.
In the second deal, Ourgame agreed to pay RMB 150m for Shenzhen Xunyou Internet Technology Co., Ltd, which similarly focuses on China regional card and board games in Hunan province. The company reported an after-tax profit of RMB862k last year.
Finally, Ourgame will pay RMB55m for Xiamen Yiwantang Internet Technology Co., Ltd, which operates 10 China regional card and board games, primarily in Fujian province. The company reported after-tax profits of RMB115k last year.
Ourgame says the deals will “complement and enlarge its China national games platforms” and “enhance its brand influence,” while adding some serious game development brain power to its existing arsenal. The value of all three deals is subject to the target companies hitting certain performance targets over the next couple years.
A well-known presence in Asian markets since its launch in 1998, Ourgame rose to western prominence a couple years back following its $35m acquisition of the World Poker Tour from its then-owner, Bwin.party digital entertainment.
Ourgame has continued to make western inroads via its interest in eSports and the US-facing social casino sector, part of chairman Eric Yang Qing’s vision for transforming the company “from a Chinese card and board games provider to a global mind sports games and entertainment company.”
Ourgame is part of a joint venture called Allied Esports, which is preparing the grand opening on March 22 of its Esports Arena Las Vegas, the first dedicated eSports arena on the Las Vegas Strip. The Arena, located in a former nightclub space at the Luxor Hotel and Casino, will hold an invitation-only, multi-day, live-streamed tournament to celebrate the launch.
Allied Esports currently boasts similar venues in Beijing, Shenzhen, Hamburg, Santa Ana (California) and has plans for a new property in Oakland. Allied also operates two ‘touring’ mobile arenas, including the new Esports Arena Drive, an 80-foot, 18-wheel, 35-ton semi-trailer that contains everything one needs to hold a eSports tournament except Cheetos-encrusted millennial onlookers.
