Goodwill Entertainment Holding (SGX:GEH) agreed to acquire 100% of entertainment technology company Funtech Solutions for SG$4 million, according to a Monday bourse filing.
Funtech is an authorized reseller in Singapore for one of the biggest karaoke equipment manufacturers in China and supplies commercial karaoke in the city-state. Currently, it has an active court case involving a contractual dispute with a supplier over renovation works.
Due to the ongoing litigation, a deferred cash consideration of SG$350,000 will be paid by Goodwill to the vendors upon resolution of the case. However, the amount will lapse if the case remains unresolved after 12 months.
Goodwill said the acquisition will help reduce its reliance on third-party vendors for events and add new revenue streams.