FUN Technologies Inc.

FUN Technologies Inc.

August 24, 2006 02:03 ET

FUN Technologies Acquires CDM Fantasy Sports, Leading Fantasy Baseball Provider

Acquisition makes FUN largest pay-to-play fantasy sports operator in North America

TORONTO, CANADA--(CCNMatthews - Aug. 24, 2006) - FUN Technologies Inc. ("FUN") (AIM:FUN)(TSX:FUN), one of the world's leading online and interactive casual games providers, announced today that it has acquired the business of CDM Fantasy Sports ("CDM"), a leading fantasy sports operator. The acquisition of CDM makes FUN the largest pay-to-play fantasy sports operator in North America.

Based in St. Louis, Missouri, CDM's 44 games are played by approximately 200,000 customers in eight sports. Acquiring CDM complements FUN's existing fantasy products through the addition of CDM's strengths in baseball and commissioner-style fantasy games. FUN is now able to offer its customers and distribution partners a wider range of fantasy products than any other operator in the North American fantasy sports market.

For the 12 months ended December 31, 2005, CDM recorded unaudited revenue of US$8 million, and earnings before interest, taxes and depreciation of approximately US$1 million. As at June 30, 2006, net assets were US$4.1 million.

The consideration for FUN's acquisition of CDM was the payment to the sellers of US$4.25 million in cash and $0.75 million worth of FUN common shares, plus a contingent earn-out obligation of up to $5 million based on revenue and EBITDA performance targets for the business payable in FUN common shares. The overall consideration to the sellers will not exceed US$10 million. Application has been made to the London Stock Exchange and the Toronto Stock Exchange for 142,279 common shares to be admitted to trading on AIM and listed on the Toronto Stock Exchange.

Lorne Abony, CEO of FUN, said, "By acquiring CDM, FUN is now the leading fantasy sports operator in the U.S., with strengths in both of the major fantasy sports - baseball and football - and across product type. CDM is a highly synergistic acquisition for FUN; through consolidation with our existing fantasy sports business we intend to create significant operating efficiencies and scale opportunities. Fantasy sports are growing, and we believe that this is the optimal moment to consolidate the sector and create an industry leader."

About FUN Technologies

FUN Technologies Inc. is one of the world's leading online and interactive casual games providers. FUN's strategy is to provide its cutting-edge gaming systems to top distribution partners around the world. FUN is 51% owned by Liberty Media Corporation, and FUN's common shares are listed on both the Toronto Stock Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange under the symbol "FUN".

Contact Information

  • FUN Technologies
    Lorne Abony
    +1 (416) 840-0806