Tue, 24 Aug 2021 | BUSINESS SALE
eSports firm Gfinity has agreed a deal to acquire Megit Ltd, the company behind technology and gaming stock tracker Stock Informer, for an initial £5 million. The acquisition is around a 2.1x multiple of Megit’s £2.3 million revenue for the year ending March 2021.
Stock Informer specialises in tracking the availability of hard to acquire technology and gaming stock. Over the past year, its e-commerce referral income has generated strong revenues, driven by factors including a global shortage of computer chips, new games consoles such as the PS5 and the rapidly accelerating shift to e-commerce.
Gfinity forecasts that the Stock Informer business can be significantly expanded. Gfinity’s directors forecast that, with an anticipated reduction in demand for consoles, Stock Informer will add £1.2 million in revenues in the first year following the acquisition, rising to around £1.5 million the next year.
Gfinity Chief Executive John Clarke commented: "Gfinity's strategic focus is based on strengthening and growing 'what we own', in particular the Gfinity Digital Media group. The proposed acquisition of Stock Informer delivers this.”
“It is a highly profitable e-commerce referral site for gamers and their lifestyles. Stock Informer will be embedded into the GDM division once the transaction completes. It is a transformational acquisition for the company and highlights the ambition of the directors to continue to drive profitable growth within the group.”
The £5 million acquisition is structured with an earn-out in which the final price may increase by a maximum of £1 million depending on Stock Informer’s performance. The initial consideration is divided equally between £2.5 million in shares and cash.
Gfinity is planning to raise at least £3 million in funding to finance the cash element of the acquisition. £500,000 of the fundraising will go towards growing Gfinity’s US business and social operations.
Find businesses for sale here.
If you are looking for an exit, we can help!
The company provides tailored cabling and network solutions, including design, implementation, and maintenance. The business offers its services across the UK to a wide range of market sectors, such as finance, retail, hospitality, and commercial in...
Established in the 2000s, the company specialises in an array of medical monitoring solutions within sterile services and endoscopy departments within the healthcare sector, using cutting edge cloud-based systems and cloud data storage.
Launched in 2012, the company built a reputation as a pioneer in sustainable event technology solutions. They enhanced attendee engagement and streamlined event operations through its innovative tools, serving conferences, exhibitions, and corporate...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.