In the wake of a management shakeup and a share price that has slid to pennies, TransGaming (TransGaming Stock Quote, Chart, News: TSXV:TNG) today gave its shareholders something to be happy about.
Shares of TNG are leading the TSXV volume charge today, after the company announced it will sell its cross-platform portability technology to California-based graphics giant NVIDIA (NVIDIA Stock Quote, Chart, News: Nasdaq:NVDA) for (U.S.) $3.75-million.
“This acquisition will allow TransGaming to focus on the rapidly growing opportunities within its digital media group,” said interim CEO Dennis Ensing. “The company will invest in the continued deployment of GameTree TV with MSOs, as well as the monetization of its smart TV footprint, to reap the benefits of subscription-based scalable revenue. We also plan to pursue both the launch of new premium content across our network and strategic partnerships or acquisitions to drive the company’s revenue growth trajectory.”
TransGaming also announced that it will be become an Nvidia Grid preferred partner, a move it says might lead the way to its GameTree TV partnering with NVIDIA’s cloud gaming technology. Nvidia, says TransGaming, will open its first ever Canadian office, which will be staffed with TransGaming employees.
Graphics processor maker Nvidia is best known for powering video games. The Nvidia Geforce GPU is legendary in the PC gaming market.
At press time, shares of TNG were up 66.7% to $0.075.