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REFILE-UPDATE 1-MTG buys stake in InnoGames, sees more M&A in online gaming
October 13, 2016 / 7:36 AM / a year ago

REFILE-UPDATE 1-MTG buys stake in InnoGames, sees more M&A in online gaming

(Clarifies CEO comment refers to more M&A)

Oct 13 (Reuters) - Swedish media company Modern Times Group (MTG) said on Thursday it has entered the online gaming market by taking a 35 percent stake in InnoGames and expects to do more such acquisitions.

* MTG enters multi-billion dollar online gaming market with InnoGames investment

* Chief Executive Jorgen Madsen Lindemann sees more acquisitions within the online gaming market, he tells Reuters

* InnoGames generated compound annual revenue growth of more than 20 pct over the last three years

* Says has entered into an agreement to acquire 35 pct of InnoGames

* Says has an option to acquire a further 16 pct of company at same valuation

* Says InnoGames has expected revenues of approximately EUR 125 mln in 2016 and an EBITDA margin of approximately 20 pct

* Says the acquisition will be EPS accretive in year one

* Says transaction is based on an enterprise value of eur 260 mln euros for 100 pct of company

* The transaction is subject to German and Austrian merger approvals Further company coverage: (Reporting By Olof Swahnberg, editing by Mia Shanley)

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