MGT Capital To Acquire Avcom

(RTTNews) - MGT Capital Investments, Inc. (MGT) said Wednesday that it has agreed to acquire Avcom, Inc., a New York City based gaming studio focused on building social casino games for mobile devices under the brand Mobile Vegas.

Along with the gaming studio, Avcom brings a proprietary software platform for secure gaming, mobile development, and sophisticated analytics, as well as expertise in the areas of digital marketing and real money gaming. Avcom also brings over 650,000 slot machine players from its existing instant win game offerings.

MGT Capital expects to issue about 491,000 shares of MGT restricted common stock to acquire full ownership of Avcom. In addition, a contingent payment of up to an additional 330,000 shares of restricted common stock is payable if certain revenue metrics are attained within an 18-month period. Closing is expected within two weeks.

The Avcom team includes a former IGT lead artist who designed some of the most popular slot machines on the casino floor including Hexbreaker, and well-known themed machines based on American Idol, Sex and the City, and the Dark Knight.

Avcom will operate under the name MGT Studios and oversee the company's online and mobile gaming properties and digital marketing. Founder Jeremy Avin will be named General Manager of MGT Studios to lead the effort.