SouthPeak Interactive and Global Services Partners Acquisition Corporation have announced a merger resulting in a new publicly-held entity to be known as SouthPeak Interactive Corporation.
The existing executive management, Terry Phillips and Melanie Mroz, will become Chairman and CEO, respectively, of the new company.
SouthPeak expects to achieve approximately USD 30 million in revenues for its fiscal year ending June 30, 2008, which represents 140 per cent growth over fiscal year 2007 revenues.
The transaction values SouthPeak at approximately USD 31 million based on the stock sale price as of January 15, 2008. The consideration paid at closing will be comprised of 5,000,000 shares of common stock and USD 5 million in cash.
At the closing, SouthPeak's management will own approximately 42 per cent of the total shares outstanding in SouthPeak Interactive Corporation
"The financial resources provided by this transaction will allow us to accelerate our strategy of expanding our product portfolio and continue to outpace the industry in terms of top and bottom-line growth," said SoutPeak CEO Melanie Mroz.
"This transaction brings SouthPeak public at an opportune moment in the video game industry," said Terry Phillips, chairman of SouthPeak.
"Overall industry sales are growing rapidly and the customer base is diversifying, opening up significant opportunity for new video game products. SouthPeak is very well positioned to deliver unique and profitable game concepts and drive substantial stockholder value as a result."
The transaction is subject to GSPAC stockholder approval, regulatory approval and other customary closing conditions. GSPAC anticipates completing the transaction in April 2008.
Southpeak is currently working on an enhanced PS3 version of its Xbox 360 game - Monster Madness: Extreme - to be released in spring 2008.