Manchester-based VR entertainment specialist Immotion Group has completed the $25m sell-off of its location-based entertainment business (LBE) to LBE BidCo Inc, with shares in Immotion up almost five per cent on the news this morning.
The group will now focus on its home-based entertainment (HBE) offering, and rebrand itself to Let’s Explore Group plc following the deal. It has already identified “one possible target company” for HBE expansion following the cash windfall.
Immotion added: “It is likely that any acquisitions would be undertaken in whole or in large part using share consideration with the cash retained by the company being deployed to grow the acquired businesses, should an acquisition be consummated.”
When Immotion first announced the deal last month it suggested that around £6.5m would be retained for “future opportunities,” with the remaining proceeds handed back to shareholders.
Immotion Group currently has deals with the likes of The 02, Blackpool Tower and the owner of Alton Towers.
A statement released when the sale was first floated last month said: “Whilst the board believes that considerable growth opportunities are available to the LBE business, it is of the view that as a result of the current and continuing challenges presented by the macroeconomic environment, not least the cost-of-living crisis and inflationary pressures in the US and UK, the trading environment could become much more challenging.
“In addition, to accelerate growth of the LBE business further capital may be required. The board is doubtful that debt finance could be secured on acceptable terms and it is unwilling to seek to raise further equity capital at the company’s current valuation. Accordingly, and in order to minimise risk for shareholders and provide a significant liquidity event in highly uncertain markets, the board has decided to pursue the proposed transaction.”
