Warthog plc, the interactive entertainment group, today announces that it has
acquired the American development studio, Fever Pitch, based in Austin, Texas.
The business has been acquired for an initial consideration of £183,000
($300,000) to be satisfied by the issue of 973,015 new ordinary Warthog shares
(the "Initial Consideration Shares"). Further Warthog shares will be issued for
each financial period up to 31 March 2005 dependent on Fever Pitch achieving
annual pre-tax profits in excess of $100,000 for each financial period. The
acquisition is immediately cash flow and earnings enhancing.
The Fever Pitch team, led by Eric Peterson, previously worked with Warthog on
Starlancer, an award-winning first-person space combat game published by
Microsoft. The business is self-funding and already has a contract to develop a
top title game associated with a well-known franchise, with a premium publisher.
Fever Pitch will be re-branded as Warthog Texas, with Eric Peterson remaining
as Studio President.
Commenting on the acquisition, Ashley Hall, CEO of Warthog said:
" This is a significant acquisition for Warthog. Most of our customers are
American and it is strategically important for us to have a presence in the US.
Fever Pitch matched our operational as well as strategic criteria. Eric and his
team of talented developers have a successful track record and strong links to
major publishers. I expect this acquisition to be earnings enhancing for Warthog
immediately. I welcome our American counterparts and hope the future of Warthog
Texas grows from strength to strength."
Eric Peterson, Studio President added:
"Fever Pitch was founded with a commitment to developing products of the highest
quality, and with an attention to detail unparalleled in the industry. It is an
honour to be joining a company that shares these same ideals. Warthog and Fever
Pitch Studios both have a proven track record of success and together we will
continue to lead the way in the world of interactive gaming. "
Application will be made for the Initial Consideration Shares to be admitted to
trading on AIM. Admission is expected to become effective on 11th February