Bublar Group intends to acquire Goodbye Kansas to create a world-leading player in visualization and XR technology

Bublar Group intends to acquire Goodbye Kansas to create a world-leading player in visualization and XR technology

Apr 30, 2020 – Bublar Group AB (publ) has entered into an agreement with a majority of the shareholders of Goodbye Kansas Holding AB with the aim of acquiring 100 per cent of the shares in the company. The transaction is a part of Bublar’s strategy and provides the opportunity to create a world-leading player in XR technology and visualization. Goodbye Kansas has a strong track-record with many leading international customers within film, gaming and streaming. The transaction is planned to be carried-out as a non-cash issue. Goodbye Kansas shareholders and creditors are offered the equivalent of 16,4 million shares in Bublar in fixed purchase price and up to three profit-based deferred consideration in the form of a maximum of 33.9 million shares in 2020. In addition to the rights issue, a directed share issue of approximately SEK 45 million is also planned for working capital for Goodbye Kansas.

The acquisition is well in line with Bublar’s strategy; to both organically and through acquisitions, build competence and technology at the absolute forefront of the XR area. The Group is given a unique position to continue developing services and scalable products in entertainment, e-commerce and industry.The Group has a strong base with many reputable international customers including Disney, Warner, Ubisoft, Electronic Arts, HBO, Netflix, Amazon Studios, Oculus (Facebook), Saab, Electrolux and Scania, as well as cutting-edge expertise in animation, real-time visualization and XR technology. Sales is expected to amount to at least SEK 200 million in 2020, in addition to expected gaming revenues in Bublar Group.

“Goodbye Kansas has a strong brand internationally and works with the largest companies in the gaming, film and streaming industries. The growing demand for XR technology in both entertainment and industrial applications enables us to jointly meet the demand for both first-class visual content and technological excellence in a better way,” says Staffan Eklöw, Chairman of the Board of Bublar Group.

Goodbye Kansas is in the middle of a financial turn-around. During January and February 2020 sales are estimated to approx. SEK 50 million, compared to SEK 18 million for the corresponding period last year and EBITDA to approx. SEK 5 million, compared to SEK -19 million for the corresponding period last year.

“Goodbye Kansas’ renowned international customer base and creative capabilities, along with our very strong profile in areas such as real-time visualizations, motion capture and “digital humans”, will, combined with Bublars AR and VR expertise, make us one of the world’s leading companies with a focus in Entertainment and Enterprise. We already have ongoing partnerships with Bublar for global customers where our respective excellences create an even stronger offering, says Peter Levin, Chairman and Co-founder of Goodbye Kansas Holding.

Goodbye Kansas has had two financial challenging years as the company has invested to take a front position on the international market. Among other things, one of the world’s most modern Motion Capture studios in Stockholm has been built, – a studio that has already become in great demand in the international gaming industry. During the latter part of 2019, the company has reached a strong front position and won several international awards. Work on improvement of processes and project management has also been carried out. However, for 2020, the company has a strong order intake and together with the previously internationally highly prominent customer base and high competence of the employees, the conditions are good for creating a successful unified company.

About Goodbye Kansas

Goodbye Kansas Holding includes Goodbye Kansas Studios and Infinite Entertainment, with more than 200 creators in Stockholm, Uppsala, London, Hamburg and Los Angeles. The company offers award winning and unique services for visual effects in movies, TV series, TV commercials, games and game trailers. Goodbye Kansas has through its early position in the increasingly converging market for film, television and gaming become a world-leading provider of real-time visual effects, animations and motion capture.

Bublar Group

Bublar Group AB (publ) is the Nordic region’s leading listed XR technology company specializing in Augmented Reality (AR) and Virtual Reality (VR). The company offers XR solutions in E-commerce, Entertainment, Training and Manufacturing. The company includes the subsidiaries Vobling, Sayduck and Virtual Brains. Bublar is headquartered in Stockholm and is listed on Nasdaq First North Growth Market.

Source: Bublar Group

For more information, please visit at Bublar Group and Goodbye Kansas