Digital River (NASDAQ: DRIV), a leading provider of global e-commerce solutions, announced that it has acquired fatfoogoo, a Europe-based, in-game and online commerce service provider. The combined forces of Digital River’s e-commerce solutions with fatfoogoo’s technology will offer game publishers and developers an unparalleled, single e-commerce connection to manage their online product sales both in-store and in-game.
“The sale of virtual goods through micro transactions continues to grow in popularity with consumers and is establishing new revenue models for the games industry,” said Joel Ronning, CEO of Digital River.“With the addition of fatfoogoo, we’ve strengthened our commitment to the gaming marketplace. We believe the combination of our in-game and in-store commerce solutions along with our subscription management capabilities will be unmatched in the industry. This partnership continues our promise to provide existing and future clients with the leading e-commerce technology and expertise they expect from Digital River.”
The e-commerce solutions from Digital River and fatfoogoo are easily integrated to offer game publishers all the scalability and reliability of a proven in-store platform along with turn-key technology designed to operate a successful in-game marketplace. In addition to providing in-game store functions, such as global payments and inventory management, the solution supports the use of virtual goods and currencies, electronic wallets, peer-to-peer marketplaces and auction capabilities.
Digital River’s fatfoogoo business unit will continue to operate out of its current location in Vienna, Austria. fatfoogoo will deliver its technology as an integrated part of Digital River’s e-commerce offering for games as well as a stand-alone solution.
“We are excited to join Digital River’s family of companies. This acquisition provides fatfoogoo with the backing of a proven e-commerce leader and enhances our leadership in the European market,” said Martin Herdina, fatfoogoo’s CEO.“Together we’re positioned to lead the future of in-game commerce with a solution that will uniquely stand out in a competitive marketplace.”
Under the terms of the agreement, Digital River acquired fatfoogoo as part of a cash transaction for approximately USD 10 million. The agreement also provides fatfoogoo shareholders with an earn-out opportunity based on the fatfoogoo business unit achieving certain performance targets. Other terms of the transaction were not disclosed.
fatfoogoo is the leading in-game commerce ecosystem for monetising online games and virtual worlds. fatfoogoo’s solutions allow both publisher-to-player and player-to-player financial interaction, as well as virtual currency management and traditional user and subscription management. Publishers can choose white label turnkey solutions or individually configured modules.
Founded in 2006, fatfoogoo is headquartered in Austria and also has offices in the U.S. and U.K. For more information, please visit www.fatfoogoo.com.
About Digital River.
Digital River, Inc., a leading provider of global e-commerce solutions, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximise online revenues as well as reduce the costs and risks of running an e-commerce operation. The company’s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.
Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website at www.digitalriver.com or call +1 952-253-1234.
In addition to the historical information contained herein, this press release contains forward-looking statements, such as statements regarding Digital River’s, and fatfoogoo’s, anticipated future performance, including the ability of Digital River and fatfoogoo to integrate e-commerce and in-game commerce offerings; as well as statements containing the words,“believes,”“intends,”“expects” and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Digital River, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: Digital River’s variability of operating results; competition in the electronic commerce and in-game commerce markets; the issues associated with integration of the companies’ technologies; the ability of the combined companies to successfully offer expanded capabilities and services in the global online market and the market’s acceptance of such offerings, and other risk factors referenced in Digital River’s public filings with the Securities and Exchange Commission.
Digital River is a registered trademark of Digital River, Inc. All other company and product names are trademarks, registrations or copyrights of their respective owners.
Richard Ratcliffe or Kathryn Mills-Webb
+44 (0)20 7401 7968