Gaming Realms said today it will sell 70% stake in one of its UK online casino brands for GBP23.1 million cash.

The developer of real money and social games will sell online casino brands including Pocket Fruity, Spin Genie, Britain’s Got Talent Games, X Factor Games to River UK Casino Ltd, a new unit of Norway-based gaming investment company River iGaming PLC.

Following the completion of the deal, River iGaming will hold 70% of the issued share capital of River UK Casino, with Gaming Realms holding the remaining 30%. River UK Casino separately has entered into a five year business-to-business platform and content agreement with Gaming Realms, which is expected to generate GBP1 million in annual revenue for Gaming Realms.

The deal consideration includes a minimum payment of GBP8.4 million and a further maximum cash payment of GBP14.7 million on an earn-out basis.

For 2017, the business being sold recorded GBP13.9 million of net gaming revenue and adjusted pretax profit before interest but after central costs of GBP2.2 million.

Gaming Realms, which will retain Slingo.com and the Slingo brands, said the sale is in line with the company’s strategy of focusing resources on international licensing and content development.

The company intends to use the sale proceeds for further developing new gaming content and platform enhancements, as well as providing a loan of GBP900,000 to fund River UK Casino’s marketing budget. River iGaming is also providing a working capital loan facility of GBP2.1 million to River UK Casino.

We believe this sale will be transformational for Gaming Realms as it will enable us to focus more of our resources on international licensing and the development of new gaming content, placing us in a stronger position to drive further profitable growth in the future,” Gaming Realms Chief Executive Patrick Southon said.

Gaming Realms has called a general meeting to seek approval for the sale on July 18. Shares in the company closed at 10.50p each, up 20%.