SilverBirch Buys Lighthouse
Canadian digital media company Lighthouse Interactive [http://www.silverbirchinc.com/index.html]for $4 million.
The company will acquire all outstanding shares of Lighthouse to be paid via $1.25 million in cash, a $400,000 vendor note, 3.85 million common shares in SilverBirch and an earn-out based on the company's financial performance over the 2008 fiscal year. Silverbirch described the move as the "first step in SilverBirch's stated strategy of building an integrated videogame company," adding that the purchase would increase both revenues and profitability for the company.
"The strategic significance of expanding into publishing can't be overemphasized," said SilverBirch CEO Derek van der Plaat. "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."
"The synergies between our two companies made the decision to become part of SilverBirch an easy one for us," added Lighthouse Interactive Co-Founder Steve Wall. "This deal will help Lighthouse to further develop our business and access vertical market opportunities as we continue to expand the Lighthouse brand."
Founded in 2004, Toronto-based SilverBirch is focused primarily on mobile game development, having acquired Avencast: Rise of the Mage [http://www.jambomobile.com/].
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Canadian digital media company Lighthouse Interactive [http://www.silverbirchinc.com/index.html]for $4 million.
The company will acquire all outstanding shares of Lighthouse to be paid via $1.25 million in cash, a $400,000 vendor note, 3.85 million common shares in SilverBirch and an earn-out based on the company's financial performance over the 2008 fiscal year. Silverbirch described the move as the "first step in SilverBirch's stated strategy of building an integrated videogame company," adding that the purchase would increase both revenues and profitability for the company.
"The strategic significance of expanding into publishing can't be overemphasized," said SilverBirch CEO Derek van der Plaat. "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."
"The synergies between our two companies made the decision to become part of SilverBirch an easy one for us," added Lighthouse Interactive Co-Founder Steve Wall. "This deal will help Lighthouse to further develop our business and access vertical market opportunities as we continue to expand the Lighthouse brand."
Founded in 2004, Toronto-based SilverBirch is focused primarily on mobile game development, having acquired Avencast: Rise of the Mage [http://www.jambomobile.com/].
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