Gamedaily reports that the transaction values the publisher – which now becomes Southpeak Interactive Corporation – at around $31 million.
SouthPeak's management team of Terry Phillips and Melanie Mroz will become Chairman and CEO, respectively.
“This gave us the opportunity to access the public market while the IPO market is currently very challenging for emerging growth companies,” Phillips told GameDaily. “In addition, other successful emerging brands were able to complete transactions with GSPAC, which were well received by investors.”
The transaction, unanimously approved by the Board of GSPAC, is expected to close this April and is comprised of 5,000,000 shares of common stock and $5 million in cash.
When the deal closes, SouthPeak management is expected to own roughly 42 percent of the total 11,900,100 shares outstanding in SouthPeak Interactive Corporation.
Southpeak expects to achieve approximately $30 million in revenues for its fiscal year ending June 30, 2008, representing 140 per cent growth over fiscal year 2007 revenues. Fiscal year 2008 EBITDA is expected to be approximately $4.5 million.