Versus Systems to acquire Xcite Interactive and expand reach into television and streaming

Versus Systems Inc (NASDAQ:VS) (CSE:VS) (FRA:BMVB) revealed that it has struck a definitive agreement with Xcite Interactive, an audience engagement focused interactive gaming, animation, and production company, to acquire 100% of its capital stock in a cash and stock deal.  Xcite, a leader in interactive audience engagement, has worked with over 150 teams across the NFL, NBA, NHL, and MLB as well as the World Cup and other live events. It has relationships with dozens of teams and content partners that will now be able to access Versus’ patented rewards platform inside their apps, streams, and broadcasts.  “This merger will allow us to build the next generation of audience engagement products,” Versus founder and CEO Matthew Pierce said in a statement.  READ: Versus Systems thinks that unlike ads, earned rewards deliver higher digital advertising engagement “Versus will take its patented rewards, advertising, and engagement tools and add them to Xcite’s XEO platform - bringing rewards and engagement to broadcasters, streamers, teams, live events, and recorded media,” he added. Pierce noted that audiences will be able to “win real rewards” while watching their “favorite games, teams, streams, and live events - on any device.” “With the new suite of products enabled by this acquisition, brands win, broadcasters win, teams win, and fans win too,” added Pierce. According to the agreement, Versus will purchase 100% of Xcite for $19 million in Versus stock, and a $2.25 million retention pool for Xcite employees. Xcite will then become a wholly-owned subsidiary of Versus, with Pierce, Versus CFO Craig Finster taking on those same roles at the subsidiary. In exchange for all the outstanding equity interests in Xcite, Versus will issue 2,011,163 shares, valued at $7.9109 based on the volume-weighted average price of Versus shares trading on the Nasdaq over 20 consecutive trading days ending on the date two days prior to the deal. Versus will also pay $130,799 in cash, subject to adjustments detailed in the agreement. The closing of the merger is subject to standard regulatory and material conditions, said the company. “The newly developed XEO platform will offer fans the ability to interact with their favorite shows, games, and events, winning rewards and prizes from their favorite brands,” said the company. The XEO platform featuring Versus prizing was beta-tested during the Canelo Alvarez and Billy Joe Saunders middleweight title fight held at the AT&T stadium in Dallas, Texas on May 8. The test showcased Keurig Dr Pepper brand Crush as well as Canelo Alvarez. Fans on the test platform were able to win everything from signed boxing gloves to DAZN codes to watch the fight. “Adding Versus to XEO is going to add so much value to TV and streaming,” said Sean Hopkins, who is the founder and Chief Product Officer at Xcite. He added that it will improve the experience for fans, brands, and for the company’s content partners. Contact the author Uttara Choudhury at uttara@proactiveinvestors.com Follow her on Twitter: @UttaraProactive