Chinese gaming giant Ourgame Holdings Ltd has embarked on a spending spree that will see it acquire three mainland China-based companies engaged in the development of mobile gaming products.
In a series of filings to the Hong Kong Stock Exchange overnight, Ourgame announced that its wholly-owned subsidiary Tianjin Shengyou Shidai had entered into a share transfer agreement with Shenzhen Xunyou Internet Technology Co to purchase 100% of the equity interest in the company for RMB150 million (US$23.3 million), with Nanjing Haoyun Meicheng Electronics Technology Co for RMB220 million (US$34.1 million) and with Xiamen Yiwantang Internet Technology Co Ltd for RMB55 million (US$8.5 million).
Shenzhen Xunyou Internet Technology Co is said to develop and operate mobile games focusing on mahjong, poker and other card and board game products in Yongzhou, Hengyang, Shaoyang and other cities in Hunan province.
Nanjing Haoyun Meicheng Electronics Technology Co operates “20 to 30 China regional card and board games” including mahjong and poker in Jiangsu, Zhejiang, Shanghai, Anhui, Guangdong and Hebei.
Xiamen Yiwantang Internet Technology Co Ltd operates “approximately 10 China regional card and board games such as mahjong and other card and board game products” covering Fujian province, with Ourgame stating that it held market share of more than 70% of similar mobile games in Northern Fujian.
Explaining the reasons for the acquisitions, totaling RMB425 million (US$66 million), Ourgame said, “Part of the group’s strategy is to actively seek investment opportunities that would bring strategic resources to expand the group’s portfolio and user base. The board believes that the acquisition presents an excellent opportunity for the group to complement and enlarge its China national games platforms.
“In view of the existing card and board games developed and operated by the targets and the geographical coverage in China, and the experiences of the members of the core management team in the targets in developing and operating card and board games from top game developers, the company believes that the acquisition … will further consolidate the group’s leading position in its domestic China card and board games business and enhance its brand influence.”
Ourgame recently announced plans to expand its World Poker Tour brand – which it purchased for US$35 million in 2015 – across Asia with a particular focus on Japan. It is also planning to develop 10 eSports arenas in China and the United States by 2019, including the Esports Arena Las Vegas at Luxor Hotel and Casino on the Las Vegas Strip, which is scheduled to open on 22 March 2017.
