MINNEAPOLIS – May 5, 2010 – Digital River, Inc. (NASDAQ: DRIV ), a leading provider of global e-commerce solutions, announced that it has acquired fatfoogoo, a Europe-based, in-game and online commerce service provider. The combined forces of Digital River’s e-commerce solutions with fatfoogoo’s technology will offer game publishers and developers an unparalleled, single e-commerce connection to manage their online product sales both in-store and in-game.
“The sale of virtual goods through micro transactions continues to grow in popularity with consumers and is establishing new revenue models for the games industry,” said Joel Ronning, CEO of Digital River. “With the addition of fatfoogoo, we’ve strengthened our commitment to the gaming marketplace. We believe the combination of our in-game and in-store commerce solution along with our subscription management capabilities will be unmatched in the industry. This partnership continues our promise to provide existing and future clients with the leading e-commerce technology and expertise they expect from Digital River.”
The e-commerce solutions from Digital River and fatfoogoo are easily integrated to offer game publishers all the scalability and reliability of a proven in-store platform along with turn-key technology designed to operate a successful in-game marketplace. In addition to providing in-game store functions, such as global payments and inventory management, the solution supports the use of virtual goods and currencies, electronic wallets, peer-to-peer marketplaces and auction capabilities.
Digital River’s fatfoogoo business unit will continue to operate out of its current location in Vienna, Austria. fatfoogoo will deliver its technology as an integrated part of Digital River’s e-commerce offering for games as well as a stand-alone solution.
“We are excited to join Digital River’s family of companies. This acquisition provides fatfoogoo with the backing of a proven e-commerce leader and enhances our leadership in the European market,” said Martin Herdina, fatfoogoo’s CEO. “Together we’re positioned to lead the future of in-game commerce with a solution that will uniquely stand out in a competitive marketplace.”
Under the terms of the agreement, Digital River acquired fatfoogoo as part of a cash transaction for approximately $10 million. The agreement also provides fatfoogoo shareholders with an earn-out opportunity based on the fatfoogoo business unit achieving certain performance targets. Other terms of the transaction were not disclosed.
“We are excited to partner with Digital River to deliver an industry leading commerce solution that best services online stores and in-game marketplaces for the gaming community,” remarks Martin Herdina, fatfoogoo CEO. “Our on-demand service models drive global revenue opportunities and operational efficiencies while reducing risk – all value propositions that are increasingly attractive to companies in these uncertain economic times. We intend to leverage these natural synergies between our business to the full advantage of our clients.”
“This partnership is another indicator of Digital River’s deep commitment to the game industry,” said Jeff Hemenway, Digital River’s group vice president of games. “In-game commerce in addition to digital downloads and subscriptions are quickly emerging as key strategies for driving game revenue. Our acquisition of THINK subscriptions last year and our integrated partnership with fatfoogoo now give us best-of-breed solutions to help our gaming client maximize revenue opportunities.”
