OliveX Holdings Limited has announced the acquisition of London-based game developer Six to Start, expected to close on 31 May 2021. Six to Start is the studio behind The Walk, the first smartphone fitness game ever funded by the UK Department of Health.
OliveX will acquire 100% of the issued shares of Six to Start with an initial cash and share consideration valued at $6.65 million and deferred, performance based consideration up to $2.85 million for a total deal of $9.5 million.
As Hong Kong based OliveX continues the rollout of their KARA Smart fitness mirror, an interactive mirror that provides live updates and on-demand workout classes, the IP and distribution channels will be a strategic asset to OliveX.
With over 8.5 million downloads, Six to Start’s Zombies, Run! app is the world’s bestselling gamified fitness application, averaging 300,000 active users per month, and approximately 50,000 paid subscribers. The storyline has been penned by award-winning novelist Naomi Alderman, and includes augmented reality tech.
As part of the deal, existing CEO and Six to Start founder Adrian Hon will become Chief Innovation Officer at OliveX.
“Six to Start has built a strong business model and a huge subscriber base of loyal users for our apps including Zombies, Run! and our growth strategy is a perfect fit with OliveX. We’ve both created innovative, game-changing technology that, when combined, will really advance the future of digital fitness,” comments Hon.
And if you're like me, I had to wrap my head around the UP to $9.5 million. Thus the statement from OliveX, "OliveX intends to undertake a capital raising to raise a minimum of A$6,000,000 (before costs) in the coming days which will fund its initial cash obligations under the acquisition and provide additional working capital."
Full details are outlined here (pages 4 and 5).