MGT acquires Avcom
Online and mobile gaming investment vehicle MGT Capital Investments has agreed a deal for the acquisition of New York City-based social casino games developer Avcom.
Subject to customary closing conditions, the company said that it expects to issue around 491,000 shares of MGT restricted common stock to acquire full ownership of Avcom.
In addition, a contingent payment of up to an additional 330,000 shares of restricted common stock is payable if certain metrics are attained in an 18-month period.
The deal is expected to be completed within two weeks.
Once the acquisition is finalised, Avcom will operate under the name MGT Studios and oversee the firm’s online and gaming properties, and digital marketing.
MGT Studios will include Avcom’s gaming studio, in addition to Avcom's proprietary software platform for secure gaming, mobile development and sophisticated analysis.
Jeremy Avin, Avcom’s founder, will serve as general manager of MGT Studios under the terms of the agreement.
“The acquisition of Avcom, including its leadership team, places MGT in a strong position to capitalise on the popularity of the social casino industry as well as adding tremendous value to our other gaming properties,” MGT’s chief executive officer, Robert Ladd, said.