Frontier Developments set to acquire PPA

16th Apr 2014 10:32

Video games producer Frontier Developments has entered an agreement to acquire the business and assets of Professional Practice Automation (PPA) in which Frontier Chief Executive David Barben is a member.The assets to be purchased include the royalty rights in respect of the Elite video game franchise, which are currently held by PPA.Barben assigned these rights to the company in June 2008 in return for a royalty based on the group's profits from the video game.The consideration for the acquisition is £5.09m, which is to be satisfied the allotment and issue to PPA of 2,001,573 new ordinary shares in the company at 254.3p.As part of the deal, Braben intends to sell up to 1,600,000 ordinary shares in Frontier at a price of 250p per ordinary share, representing a 5.1% stake. The deal will leave him with a 53.7% interest.As of 11:30 the share price was unchanged at 250p.WS