Goodwill Entertainment (SGX:GEH
) announced that it has entered into a sale and purchase agreement to acquire 100% equity stake in Funtech Solution for $4 million.
According to the group, Funtech is an entertainment technology company in Singapore specialising in the development, installation and consultation of advanced audio-visual (AV) solutions.
“As an authorised seller in Singapore for one of the largest karaoke equipment manufacturers in China and one of only eight authorised commercial karaoke suppliers in Singapore recognised by Music Rights (Singapore) Public Limited, Funtech holds a strong position in the domestic market,” the group states.
For FY2025 ended Dec 31, Funtech achieved a net profit after tax of approximately $670,000, with net assets valued at around $530,000. The purchase consideration represents approximately six times Funtech’s FY2025 net profit after tax, and was arrived at on a willing-buyer, willing-seller basis following arm’s length negotiations.
Goodwill Entertainment believes that this acquisition will enable the company to institutionalise technology-enabled solutions across its core "HaveFun Family Karaoke" and "HaveFun Live Show" brands.
Beyond that, the group hopes to capture new B2B business opportunities by scaling its turnkey entertainment venue solutions, song-ordering systems and software integrations to third-party operators across Singapore, Malaysia and Southeast Asia, generating new and recurring revenue streams.
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In terms of financing the Funtech acquisition, 75% of the total consideration will be financed from the issuance of 20 million shares at 15 cents each while the remaining 25% will be paid via cash.
The newly issued shares will represent around 4.82% of the group’s post-completion enlarged share capital and are bound by an irrevocable six-month voluntary moratorium from the date of issuance.
“By combining our robust retail brand equity with Funtech’s backend intellectual property, we are uniquely positioned to innovate our experiential formats within Singapore and commercially export these end-to-end entertainment solutions into high-growth regional markets,” says Flint Lu, executive chairman and CEO of Goodwill Entertainment.
As at 9.20am, shares in Goodwill Entertainment were unchanged at 14.5 cents.
