Mobile marketing and content company Motopia (ASX:MOT) has arranged to acquire a sports mobile apps developer in an all-stock deal worth $1 million.
Motopia has agreed to pay 2 million Motopia shares at $0.50 per share for the purchase of Pro Fantasy Sports Pty Ltd.
As well as the shares, Motopia and Pro Fantasy Sports shareholders will share the proceeds of sales, sponsorship and advertising from apps developed by the company, with Motopia to receive the lion's share of 60%.
Pro Fantasy Sports currently has the exclusive mobile rights with four AFL players, Carlton's Chris Judd, Geelong's Jimmy Bartel, Hawthorn's Luke Hodge and Collingwood's Luke Ball. Judd and former players Shane Crawford and Steve Greene are among Pro Fantasy Sports' current owners.
The players plan to participate in future app development, including a fantasy AFL competition app.
Motopia CEO Matthew Gerard said he viewed the acquisition as an “opportunity for Motopia to break into the sports sector in Australia.”
MOT shares declined 2.41% during Thursday's trading to $0.083.