B90 has announced that it has reached a share purchase agreement with Funko to purchase Emwys.
The gaming marketing company will pay an initial €500,000 (£427,000/$560,000) in cash and €250,000 through convertible loan notes for the Swedish marketing business.
The balance for the sale will be subject to certain performance conditions being achieved, with €1.25m paid for in cash and another €1.6m either through convertible loan notes or issuing new shares in B90.
B90 intends to finance both the cash payments from the proceeds of the subscription service that was announced on 30 June 2023.
Alternatively, the company can choose to settle the entire balance for €2.25m in cash at the closing date of 1 September 2023.
As part of the acquisition, Emwys will be providing knowledge and experience in pay-per-click marketing.
For July and August 2023, Funko will still receive 75% of any revenue share agreement payments, with B90 taking 25%.
Ronny Breivik, executive chairman of B90, believes that the acquisition of Emwys presents opportunities for B90.
“It is a step change for our business both in terms of scale and operations,” said Breivik. “By acquiring new knowledge and investing in this proven marketing concept, we aim to drive strong revenue growth whilst continuing to generate profits from our existing marketing operations.”
“This is an important first step in our ‘buy and build’ M&A strategy,” the B90 executive chairman added.
“We will seek to scale our business rapidly by following a strategic and deliberate approach to actively pursue selective acquisitions and other opportunities, such as entering licence agreements with businesses in our sector which seek operational knowhow and distribution capabilities.”