Leyou Technologies Holdings Limited has been listed on the Hong Kong Stock Exchange since January 2011. On January 2015, we have successfully acquired 58% stake of Digital Extremes, a leading next-generation Canadian studio developing Free-to-Play (F2P), AAA-grade multi-platform online video game. In May 2016, we further acquired another 38% stake of Digital Extremes. Over the past 3+ years, the user base of our flagship sci-fi game, Warframe has grown to more than 22 million in over 150 countries by offering major updates with incredible graphics and extensive character customization features. Warframe is now among the top F2P PC online (Steam’s ranking) and console game globally. Organically, we continue to see further revenue uplift from the on-going high quality updates on Warframe. We remain excited by the new games pipeline developed in-house at Digital Extremes, and also potentially through working with other world class video gaming studios.
The Company is committed in building a diversified portfolio of profitable video gaming studios with successful track records, strong intellectual properties and franchises, as well as world class production capacity in developing high-end video games. With this in mind, the Company has announced on 1 July, 2016 to purchase 3 UK video companies – Splash Damage, Fireteam and Warchest for a maximum consideration of US$150m (subject to the SEHK approval). Given the improving trend in profitability, the prospects of their future projects, and the possible synergies generated within the group, management see substantial growth potentials from these target companies for the coming years. The UK acquisition will also allow us to further diversify its video gaming portfolio geographically and thus enhance its revenue and earning streams.