April 30, 2020 – Bublar Group AB has announced that it has entered into an agreement with a majority of the shareholders of Goodbye Kansas Holding AB with the aim of acquiring 100 per cent of the shares in the company. The transaction is a part of Bublar’s strategy and the company anticipates that it will provide the opportunity to “create a world-leading player in XR technology and visualization.”
According to Bublar, Goodbye Kansas has a strong track-record with international customers within film, gaming and streaming. The transaction is planned to be carried-out as a non-cash issue. Goodbye Kansas shareholders and creditors are offered the equivalent of 16,4 million shares in Bublar in fixed purchase price and up to three profit-based deferred consideration in the form of a maximum of 33.9 million shares in 2020. In addition to the rights issue, a directed share issue of approximately SEK 45 million (USD $4.6 million) is also planned for working capital for Goodbye Kansas.
Bublar states that the acquisition is in line with its strategy; “to both organically and through acquisitions, build competence and technology at the absolute forefront of the XR area”, and it provides the Group with a the ability to continue developing services and scalable products in entertainment, e-commerce and industry.
The Group also states that it has a strong base with many international customers including Disney, Warner, Ubisoft, Electronic Arts, HBO, Netflix, Amazon Studios, Oculus (Facebook), Saab, Electrolux and Scania, as well as expertise in animation, real-time visualization and XR technology. As a result, Bublar anticipates that its Sales are expected to amount to at least SEK 200 million (USD $20.5 million) in 2020, in addition to expected gaming revenues.
“Goodbye Kansas has a strong brand internationally and works with the largest companies in the gaming, film and streaming industries. The growing demand for XR technology in both entertainment and industrial applications enables us to jointly meet the demand for both first-class visual content and technological excellence in a better way,” said Staffan Eklöw, Chairman of the Board of Bublar Group.
According to the companies, Goodbye Kansas is in the middle of a financial turn-around. During January and February 2020 sales are estimated to approx. SEK 50 million, compared to SEK 18 million for the corresponding period last year and EBITDA to approx. SEK 5 million, compared to SEK -19 million for the corresponding period last year.
Peter Levin, Chairman and Co-founder of Goodbye Kansas Holding, commented: “Goodbye Kansas’ renowned international customer base and creative capabilities, along with our very strong profile in areas such as real-time visualizations, motion capture and ‘digital humans’, will, combined with Bublar’s AR and VR expertise, make us one of the world’s leading companies with a focus in entertainment and enterprise. We already have ongoing partnerships with Bublar for global customers where our respective excellences create an even stronger offering”.
According to Bublar, Goodbye Kansas has had two financially challenging years, as the company has invested to become established on the international market. Among other things, its modern Motion Capture studios in Stockholm has been built – a studio that the company states has already seen great demand from the international gaming industry. Work on improvement of processes and project management has also reportedly been carried out.
The acquisition of Kansas Group will be made through a non-cash issue, in which Goodbye Kansas shareholders are offered shares in Bublar Group. The acquisition is carried out with a fixed purchase price of 16.4 million shares (approx. SEK 56 million), based on 30 days volume weighted average price (VWAP) and an additional purchase price of a maximum of 33.9 million shares to be paid in three steps, the number being based on Goodbye Kansas’ 2020 earnings at the EBITDA level. For more information on the transaction, visit the Bublar website.
Image credit: Bublar
About the author
Sam is the Founder and Managing Editor of Auganix. With a background in research and report writing, he has been covering XR industry news for the past five years.