LOS ANGELES, June 04, 2021 (GLOBE NEWSWIRE) — Versus Systems Inc. (“Versus” or the “Company”) (Nasdaq: VS) (FRANKFURT: BMVB) announced today the completion of its previously announced acquisition of Xcite Interactive, Inc. (“Xcite”). The acquisition was completed through a merger of a wholly-owned subsidiary of Versus with and into Xcite.
Versus will add its proprietary prizing engine to Xcite’s newly developed XEO platform that is already in use with multiple professional sports teams and live major events. This rewards-based engagement will expand into TV and streaming while capitalizing on Xcite’s connections with more than 150 sports teams and brands. The new Versus-XEO platform will allow fans to interact with their favorite shows, games, and events to win real-world prizes inside apps, streams, and broadcasts.
Xcite has traditionally worked with college and professional teams, as well as leagues and major events like the X-Games, the Olympics and the FIFA World Cup. They have done so largely by licensing their games and engagement features like polling, trivia, social walls, and predictive games to content partners for use in their apps and websites. Versus will continue to grow that partner footprint while also adding the Versus reward technology and dynamic regulatory compliance engine so that fans of these teams and events can win real-world rewards brought to the audience by partner brands.
The transaction comes on the heels of a successful Versus-Xcite beta test during the Canelo Alvarez – Billy Joe Saunders middleweight title fight held at the AT&T Stadium in Dallas, Texas on May 8, 2021. In partnership with Frias Agency, Versus worked with Keurig Dr. Pepper brand Crush, rewarding over one thousand winning audience members with Crush soda alongside signed boxing gloves and DAZN codes to watch the fight.
“Versus combining with Xcite is a huge step for interactive media and fan engagement,” said Matthew Pierce, CEO of Versus. “This acquisition is transformative not only for Versus but for our audiences, brands, and content partners like teams, game developers, broadcasters, and streamers of all sizes. Versus adding rewards to Xcite’s already strong base of teams and live events that use the XEO platform as a service will substantially grow our product offerings and benefit all our partners. We’ve already seen industry-leading transaction rates and engagement – even in tests of our combined products – results that we expect will only improve over time.”
Matthew Pierce and Versus President and CFO Craig Finster will retain their roles at the subsidiary, with the Versus Board of Directors also becoming the Xcite Board.
Pursuant to the definitive acquisition agreement, Versus paid approximately $15.2 million dollars to acquire the capital stock of Xcite, for a combination of Versus common shares and cash. Continuing employees of Xcite will also receive options to purchase Versus shares from an approximately $2.25M retention equity plan. The overall consideration is subject to customary post-closing adjustments.
About Xcite Interactive
Xcite Interactive is a global leader engaging online audiences at scale; we make every event more fun and profitable. Our cloud-scale web services platform brings the latest technology for gamification, content interaction and intelligence. We bring “audience expression” to another level and offer actionable moments for sponsors. You’ll find our technology empowering the NFL, NBA, NHL and MLB, Olympics, World Cup, X-Games, Formula1 and corporate events around the globe. For more information, visit www.xcitelive.com.
About Versus Systems
Versus Systems Inc. has developed a proprietary prizing and promotions engine that allows publishers, developers, and creators of streaming media, live events, broadcast TV, games, apps, and other content to offer real world prizes inside their content. Audiences can choose from among the offered prizes and then complete in-game or in-app challenges to win the prizes. The Versus platform can be integrated into streaming media, TV, mobile, console, and PC games, as well as mobile apps. For more information, please visit www.versussystems.com or visit the official Versus Systems YouTube channel.
Investor contact:
Cody Slach and Sophie Pearson
Gateway Investor Relations
949-574-3860
IR@versussystems.com
or
press@versussystems.com
Disclaimer for Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward looking statements. These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable law.
