JoWood to Acquire DreamCatcher
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JoWooD to acquire Video Game Publisher DreamCatcher Inc.
Liezen, Austria/Toronto, Kanada November 3rd, 2006: JoWooD Productions Software AG (ATXPrime: JWD) announces that it has entered into an agreement to acquire Canadian based video games publisher, DreamCatcher Inc.
This acquisition will provide JoWooD with direct access to every major retailer of PC and video games in North America. In addition, JoWooD will own America's #1 publisher of Adventure games further underlining JoWooD's commitment to strengthen and broaden its distribution capacity through a proven and established network and to deliver compelling PC and video games to consumers worldwide.
"Acquiring DreamCatcher perfectly aligns with JoWooD's strategy to deliver high-quality computer and videogames globally. We are looking at DreamCatcher as our North American counterpart and there are numerous and important synergies waiting to be exploited by all of us) says Albert Seidl, CEO of JoWooD Productions Software AG.
"DreamCatcher is very excited about joining forces with JoWooD. There are some incredible synergies that are now in place that will enable us to build a very strong global company. JoWooD possesses a great line-up of titles, supported by some dynamic brands and we are thrilled about helping to further grow those brands in North America,) comments Richard Wah Kan, President and CEO of DreamCatcher.
(We offer very strong North American assets, including a leading position in Adventure game publishing, as well as an extensive retail distribution network that we have been building since our inception over 10 years ago,) he adds.
Under the terms of the agreement, DreamCatcher will become a wholly owned subsidiary of JoWooD and the company's management team and employees will continue to operate from their office based in Toronto, Canada. The acquisition will be contemplated through a share deal whereby JoWooD will increase its share capital by utilizing the existing authorized capital. The newly issued shares will be formally subscribed for by the shareholders of DreamCatcher. The shareholders of Dreamcatcher will hold a 23% stake in the share capital of JoWooD after closing of the transaction. The capital increase is subject to an audit report by an expert to be appointed in accordance with Austrian applicable provisions.
DreamCatcher's track record, its leading position in the market of Adventure games, and the experienced staff constitute the basis for the soon-to-be combined company. Following extensive business, finance, legal and tax due diligence, both companies expect a positive impact on DreamCatcher's balance sheet once the transaction has been closed.
(DreamCatcher's strong brands and licenses such as Painkiller, Agatha Christie, and others, significantly contributed to last year's turnover of CAD 25 million (~ € 17,5 million) respectively,) said Albert Seidl. With upcoming sequels from these brands as well as some additional new brands, JoWooD's capacity and existing network throughout Europe allows JoWooD to immediately start marketing DreamCatcher's titles.
JoWooD will now benefit from a much larger product portfolio and the ability to simultaneously release products world wide through JoWooD's and DreamCatcher's mature distribution networks. DreamCatcher's line-up of console titles also complements JoWooD's current product strategy.
In particular, JoWooD will benefit from DreamCatcher's long-term and direct relationship to the most important retailers in the North American market, elevating JoWooD's margins.
Given the significant increase of the combined product-portfolio, JoWooD furthermore anticipates a substantial increase in the overall business volume.
The closing of the transaction is in particular subject to anti-trust approvals in Austria and Canada.
About JoWooD Productions Software AG
Shares of the JoWooD Productions Software AG are traded at the Vienna stock exchange in the prime market segment. JoWooD is one of the leading publishers of computer- and videogames. JoWooD develops and publishes state-of-the-art entertainment software for all major existing and upcoming systems. JoWooD`s games are distributed in all territories by a worldwide net of distribution partners.
About DreamCatcher Inc.
DreamCatcher Inc. is a leading worldwide publisher and distributor of interactive entertainment software. Established in 1996, the company markets its products under two popular labels: DreamCatcher Games, featuring the critically acclaimed, best-selling game Painkiller; and The Adventure Company, the number one brand for PC adventure game sales worldwide including award winning titles such as Syberia and Agatha Christie: And Then There Were None. DreamCatcher products include titles for the PC as well as all leading hardware platforms. DreamCatcher is partnered with venture capital firms VenGrowth Private Equity Partners Inc. and Lawrence Investments LLC as well as Wellington Financial LP, and the Royal Bank of Canada. DreamCatcher's head office is located in Toronto, Canada.
Visit www.dreamcatchergames.com for more information.
