Indoor Skydive Australia Group Limited (ASX:IDZ) (ISA Group) announces the acquisition of Red Cartel, Virtual Reality production studio and content developers.
Red Cartel are Australia’s leading experts in Virtual Reality, Augmented Reality and, location-based entertainment. The company has over 20 years of experience servicing a large number of industries including Oil & Gas, Entertainment, Healthcare and Government. The company has over 20 years of experience servicing a large number of industries including Entertainment, Construction, Healthcare and Government. Previous clients include Shell, Red Bull, eBay, Qantas, Cadbury, KPMG and TAFE.
The incremental value to ISA Group shareholders includes;
• Creation of games for FREAK Entertainment
• Continued development of Defence and Industry capabilities
• Ability to broaden business models and revenue streams through IP ownership
Creation of games for FREAK
Red Cartel has previously built a world class Virtual Reality free roam game and will design and create new free roam and arcade style content to suit current and future FREAK venues. FREAK is currently looking at multiple high through-put shorter experiences to suit theme parks, festivals and other high foot traffic areas. The ability to design, build and operate these experiences will increase the current offering under the FREAK brand.
Defence and Industry Capabilities
The acquisition includes a cutting edge military Virtual Reality training tool which has been custom built by Red Cartel over the past 12 months. The tactical trainer has been developed with current defence requirements in mind and will be ready for live trial within the first 6 months of the acquisition. The ability to provide turnkey solutions and support to global Defence markets forms part of the simulation training strategy that ISA Group put into motion last year.
IP ownership and additional revenue streams
Removing upstream limitations is key to expediting the FREAK Entertainment rollout, with in house IP enabling Franchise and “Turn Key” system business models. Outside of FREAK, the in-house development capability greatly increases ISA Group’s ability to add additional revenue streams such as licencing, support and partnerships with Enterprise markets.
“The Red Cartel team are very excited to be joining ISA Group. ISA Group is an exceptional fit for us as the vision, goals and culture of the 2 businesses align perfectly. Our 20+ years of experience in 3D production and expertise in VR development, combined with ISA Group’s extensive military background, are a perfect combination of skills to produce world-class military training applications” said Landon Curry, Managing Director and Founder, Red Cartel.
Wayne Jones, CEO of ISA Group said “The acquisition of Red Cartel unleashes some major opportunities in both the consumer and enterprise markets. The ability to custom build content and specific equipment of military grade positions the company to engage direct with military and law enforcement units around the world. ISA Group welcomes Landon Curry and his team to the company and we look forward to scaling both market segments with the addition of Red Cartel.”
For further details, view the full ASX release here.