Optimal Group hopes the acquisition will allow it to expand its consumer technology platform and build corporate brands while developing a cross-platform media entertainment strategy.
The acquisition applies to WowWee Limited, the privately held Hong Kong-based developers, marketer and supplier of consumer robotic toy and electronic products such as Robosapien. It also applies to the subsidiaries WowWee Marketing and WowWee Group.
The deal will cost the Optimal Group a total of $65 million. $55 million of this will be paid in cash while $10 million will be paid via Optimal Group Class A shares. The deal also includes a warrant to purchase up to an addition 820 Class A shares at a price of $5.56 per share.
WowWee Senior management and shareholders will continue to be employed after the deal is complete, which is expected in the fourth quarter of 2007.
The Canadian firm plan to expand WowWee’s sale channels outside the US and its product design, development and production of SKU’s as well as begin entertainment, licensing, publishing and merchandising activities.