Immotion (LSE:IMMO) enjoyed a 4.6pc lift to 11.1p on Friday after announcing that it will launch a themed virtual reality (VR) arena on the back of an exclusive content deal signed with a studio backed by MGM.
The business has signed a three-year deal with Survios for the use of its global number one interactive VR game ‘Raw Data’. Immotion will install the game onto its arenas – which are 4m X 4m enclosures that allow up to four players to play against each other – in partnership with leisure operations from early next month. The company will also be able to sell, or partner with clients globally, for the rollout of Survios moving forward.
Raw Data is an interactive science fiction-themed first-person shooter game. The deal with Immotion will see the game – with is the first consumer VR title to reach $1m in month sales – offered as a multi-player VR experience for the first time in the out-of-home market.
Backed by MGM, Survios is a leading VR studio based in California. It recently completed a series C funding round led by MGM to bring its funding to more than $50m.As part of the deal, MGM chairman and chief executive Gary Barber joined its board.
Immotion’s chief executive Martin Higginson said: ‘I am thrilled to be partnering with such a great company as Survios. We have been working on our VR Arena for some months, and to have exclusivity on such an iconic game as ‘Raw Data’ is a major coup for Immotion, further underpinning our position as global leaders in the ‘out of home’ VR market.
‘We continue to focus on growing our partnership model with high footfall edutainment and leisure partners. We provide our partners with new exciting attractions that complement their offerings and generate valuable ancillary revenue for them, whilst building recurring revenues for Immotion. We believe this is a highly scalable model with global potential. We look forward to announcing partnerships with major destinations for the launch of our VR Arena in the coming weeks.’
The update follows the news last month that Immotion had signed a $500k contract with Dutch family entertainment specialist, iP2Entertainment. Under the agreement, Immotion will supply three exclusive VR and immersive experiences, which will be installed in IP2Entertainment centres. IP2 is building immersive indoor family entertainment centres all around the world for several well-known brands including National Geographic and DreamWorks.
Work on the projects is expected to be completed by November 2019 with installations on show from later this year into 2020.