Fatfish Internet Group Ltd (ASX:FFG) (US:FFTTF) has entered into a sale and purchase agreement to acquire 100% of Snaefell Ventures AB through its wholly-owned Swedish subsidiary Fatfish Global Ventures AB.
Specialising in investing in innovative, unlisted start-up technology companies, Snaefell works in parallel with directors and management to accelerate growth before exiting the investments.
Snaefell board members and entrepreneurs Frederick Lemmel and Johanna Wollert Mellin will join Fatfish Global’s board as part of the transaction.
Fatfish chief executive officer Kin Wai Lau said the acquisition of Snaefell by Fatfish Global was an exciting addition to an already thriving portfolio.
He said: “Technologies such as the unmanned retail store ‘Moby’ have the ability to revolutionise an industry, whilst the Wheelys mobile café franchise is one of the fastest growing franchises in the world.
“We look forward to welcoming Mrs Mellin and Mr Lemmel to the FGV board and their extensive experience will contribute significant value to the Fatfish global businesses as a whole.”
Fatfish Global is a public company that holds the consumer internet portfolio business of the Fatfish Group.
Purchase consideration under the agreement is $5.2 million, to be satisfied entirely through issuance of new shares in Fatfish Global.
The existing owners of Snaefell will receive the shares, comprising just over 3.8 million ordinary shares, resulting in a holding of around 19% of Fatfish Global.
Snaefell has ownership in four high-growth companies: 13.27% of Wheelys Inc; 10% of White Whale AB (known as Moby); 3.8% of Divvit AB; and 10% of Stilla (with an option to increase to 15%).
It intends to actively participate in developing these holdings and is seeking further investments in the technology space.