StockMarketWire.com - Frontier Developments has agreed to acquire the business and assets of Professional Practice Automation, a limited liability partnership in which Frontier chief executive David Braben is a member.

The assets to be acquired include the royalty rights in respect of the Elite video game franchise, the benefit of which are currently held by PPA.

Braben assigned these rights to the company in June 2008 in return for a royalty based on Frontier's profits from the Elite video game franchise.

The consideration for the acquisition is £5.09m, which is to be satisfied by the allotment and issue to PPA of 2,001,573 new ordinary shares at 254.3p apiece - the average mid-market closing price for the company's ordinary shares for the past five trading days.

The company also says it has been advised by Braben of his intention to sell up to 1,600,000 ordinary shares in the company at a price of 250p apiece via an accelerated bookbuild placing. This represents 5.1% of the issued share capital of Frontier.





Story provided by StockMarketWire.com