Deal worth CAD$4m to help build an 'integrated video game company'Canadian developer SilverBirch has announced plans to buy Netherlands-based publisher Lighthouse in a deal worth around CAD $4m (close to £2m).
In an official announcement the deal, the firm described the move as the "first step in SilverBirch's stated strategy of building an integrated video game company. The acquisition will improve the fundamentals of SilverBirch by adding to both revenues and profitability of the company."
"The strategic significance of expanding into publishing can't be overemphasized," commented Derek van der Plaat, SilverBirch CEO. "Being a developer and a publisher will allow us to further diversify our revenue streams and capture a greater proportion of the video game industry value chain."
SilverBirch said it will acquire all of the outstanding shares of Lighthouse for a purchase price of up to CAD $4 million, which will be payable as $1.25 million in cash, a $400,000 vendor note, 3.85 million common shares of SilverBirch, and an earn-out based on fiscal 2008 financial performance
"The synergies between our two companies made the decision to become part of SilverBirch an easy one for us. This deal will help Lighthouse to further develop our business and access vertical market opportunities as we continue to expand the Lighthouse brand," said Steve Wall, Executive VP and co-founder of Lighthouse Interactive.