IVP Technology Corporation announced today that it has purchased Ignition Entertainment Limited of the UK for 50,000,000 shares plus further consideration based on performance of its management. All shares will be subject to an escrow agreement with hold periods up to three years. Ignition develops, produces and distributes consumer software and games for multiple computer, game, communication and hand held device platforms. Ignition employs approximately 30 people at offices in Banbury and Waltham Abbey, UK.
Ignition is a recently formed entity, which was made up of certain asset and share acquisitions derived from Archer MacLean, Awesome Developments Limited, 3 R Learning Limited, Alternative Sources Limited and I Wish (Games) Limited.
Mr. Brian MacDonald, President and CEO of IVP was quoted as saying that ” The purchase of Ignition marks a turning point in IVP’s corporate development; Ignition has ongoing revenue, approximately USD 2,000,000 cash on hand and value proven intellectual property in its asset base. Mr. MacDonald also went on to say: ” . . . that the acquisition of Ignition provides IVP with a strong second pillar on which the company can build its operating business lines – IVP remains committed to selling software products in the mobile enterprise application sector however the immediate cash and revenue infusion from Ignition should assist IVP in its overall corporate development program.”
Under the terms of the purchase agreement IVP and Ignition will enter into a share escrow agreement, which will control the release of 50,000,000 common shares of basic consideration. In addition certain management personnel will have the opportunity to earn up to 15,000,000 additional common shares over the next three years on attainment of the following minimum revenue and profit milestones:
- First 12 months after closing – USD 13,000,000 revenue and USD 1,000,000 pretax profit.
- Next 12 months after closing USD 26,000,000 revenue and USD 5,000,000 pretax profit
- Next 12 months after closing USD 45,000,000 revenue and USD 15,000,000 pretax profit.
Key management personnel acquired with Ignition include Archer MacLean, developer of six (6) of the top ten (10) best selling UK consumer entertainment software titles for the last ten (10) years, Martin Monnickendam, Vijay Chadha and Ajay Chadha previously Chief Executive Officer, Buying Director and Sales Director, respectively of the U.K. subsidiary of major software distributor Bigben Interactive SA of France. (Stock trading number 7407, Paris Bourse).
Ignition has tangible assets of approximately USD 2,000,000 cash on hand in addition to accounts receivable of approximately USD 400,000. In addition, intangible intellectual property assets consisting of approximately 25 current production and saleable software titles are included in the company’s asset base. Ignition is free from liabilities except normal trade debt.
About IVP Technology Corporation
IVP Technology Corporation (www.ivptechnology.com) develops, markets and distributes software and related products for both the Enterprise and the Consumer marketplace. With the acquisition of Ignition Entertainment Limited, IVP’s consumer software division will develop, publish, license and distribute consumer software products such as software and video game products for the PC, Sony PlayStation, Nintendo Game Boy Advance, Nintendo Game Cube and Microsoft X-Box platforms on a worldwide basis. IVP’s enterprise software division develops, markets and installs data solutions that solve problems and create value for mid size companies, large corporations and government agencies. These data solutions incorporate data acquisition and analysis tools such as “PowerAudit”, “Classifier” and “VIPER”. IVP’s data solutions are mobile enterprise-oriented and cross-platform. They facilitate remote-data-collection, management, and delivery of information services over corporate Intranets and the Internet.