RealNetworks, Inc., a provider of downloadable PC-based casual games, has acquired Helsinki-based Mr.Goodliving Ltd, a developer and publisher of mobile games throughout Europe. The acquisition establishes Real in the mobile games market, provides new market opportunities for its existing library of game titles, and will expand the reach of Mr.Goodliving's titles into the US and Asia. Mr.Goodliving's library of games includes the Playman Sports series and the European-distribution rights for the mobile edition of Trivial Pursuit. Mr.Goodliving's games are available through more than 100 distributors and carriers including, Vodafone Global Content Services, MMO2 Group, Telefonica, H3G, T-Mobile International, and Orange Group. In addition to its games, Mr.Goodliving has developed EMERGE, a proprietary development platform which is designed to enable rapid and scalable publishing of games to more than 200 handsets in 20 languages.
Real is acquiring Mr.Goodliving Ltd for approximately $15 million in cash. The transaction formally closed on Friday May 6, 2005. Real expects the acquisition to generate incremental revenue of approximately $3 million for the remainder of 2005 and approximately $8 million in 2006. The acquisition does not materially impact 2005 earnings guidance and is expected to be slightly accretive to 2006 earnings per share. The company noted that the financial guidance it provided on May 4, 2005 did not include the financial impact of the acquisition. At this time, Real is not disclosing additional financial information related to the acquisition.
Mr.Goodliving will operate as a wholly-owned subsidiary of Real. All of Mr.Goodliving's employees will continue with Real and remain in their Helsinki location. Juha Ruskola will continue as Managing Director, Mr.Goodliving and lead Real's mobile games business in Europe, Middle-East and Africa. He will report to Martin Plaehn, head of games.