Immersive technology company Immotion is to sell its location-based arm for $25.2 million and dispose of subsidiary Uvisan.
The Salford company, listed in London, will retain its home-based entertainment business, rebrand as Let’s Explore Group plc and seek to grow this through strategic acquisitions.
Its location-based entertainment (LBE) arm will be sold, subject to shareholder approval, to LBE BidCo Inc.
It has also completed the disposal of Uvisan Limited for cash consideration of £100,000.
Should the primary deal go through, the majority of the proceeds from the LBE sale will be returned to shareholders – around £13.5m, equating to approximately 3p per share – while retaining £6.5m within the company for future acquisitions.
The intention is to build on the board’s expertise, using HBE as an initial platform to create a high-growth trading group following encouraging sales via its distribution partner Wicked Vision.
These include a trial with shopping channel QVC, where around £1m worth of its Vodiac product, at retail value, were sold in a small number of on-air TV demonstrations. Vodiac is a smartphone-powered VR headset and companion app which provides the user with 75 different virtual reality experiences to try across seven channels.
It has also launched Let’s Explore Oceans, an educational VR pack that includes a smartphone-powered VR headset, holographic cube and hardback book. This sold out on Amazon in Q4 2022.
Rod Findley will remain with the LBE business and step down as a director of the company.
“Given the current economic climate we believe this is a good deal for all shareholders, allowing us to not only return cash per share in excess of today’s share price, but to go forward with renewed energy, and cash in the plc vehicle,” said Martin Higginson, CEO.
“Furthermore, with access to capital, this proposed sale will allow the business we started, along with the team we created, to grow faster. The journey has had a few bumps along the way, not least the COVID pandemic.
“The hardest part of starting any business is the journey through to profitability. We have, despite the challenges, achieved this, and now hand over a profitable business for the next stage in its journey.
“It has been my pleasure to have worked with such a talented team, and I wish them and the new owners well.”
On the prospects for the rebranded Let’s Explore Group plc, he added: “I am genuinely excited about the next stage in the company’s journey. We have, I believe, got the opportunity to build a highly dynamic trading business, and with a few opportunities already on the horizon, I am looking forward to what the future holds.”
Meanwhile Immotion’s LBE division has signed a new three-year framework agreement – running through to 31st December 2025 – with Merlin, covering the 26 sites at which Immotion has already installed or agreed to install a VR attraction.
The new framework agreement streamlines the trading relationship between the parties, as well as the process for agreeing installations into further Merlin venues.