Funtech Buying A Fantasy Sports Concern

The Boca Raton-based parent company of Fantasy Sports, Inc., Silverstar Holdings, Ltd., has sold to Lorne Abony's Canadian public company FUN Technologies Inc., almost all of the assets and business of its subsidiary.

$3.85 million in cash was the consideration paid for the sale. It was paid out at the closing along with the assumption of particular operating liabilities.

Through this sale, Silverstar Holdings will realize a gain of approximately $2 million.

President and CEO of Silverstar Holdings, Clive Kabatznik, has said that during the past 12 months, his company has shifted its focus toward the purchase of broad based entertainment software platforms and companies. The result will be, according to him, that Fantasy Sports will no longer be viewed as a central holding to be used for fueling their long-term growth.

With this sale, CEO Kabatznik states, the company will be able to focus on the operation and acquisition of businesses which they deem to be more suited to their overall growth strategy. He says that the company will utilize the proceeds from the sale in order to repay down debt and to finance future acquisitions. Having taken ownership of approximately $15 million in cash and notes receivable, the company is positioned, he says, to take advantage of those strategic opportunities that may arise.

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