Digital River Acquires Fatfoogoo From gcp

gamma Capital Partners (gcp), the Austrian VC technology investor, has divested itself from Fatfoogoo through a sale to Digital River. gcp first invested in the e-commerce platform with the initial round of institutional investing in 2007. The deal has Digital River paying about USD 10 million in cash while providing Fatfoogoo shareholders a performance-based earn-out option. For now, Fatfoogoo will continue to operate at its current Austrian location.

With the previous acquisitions of payment processor Netgiro and game subscription company Think Subscription, Digital River is now in a strong position to integrate all three companies into a dominating e-commerce platform.

Fatfoogoo (www.fatfoogoo.com)
Founded in 2006, Fatfoogoo is a privately held company which develops e-commerce solutions and ecosystems for deployment in online games and virtual worlds. The company’s technology allows for real-time and real-money commercial transactions to occur within the game or virtual world environment. The Fatfoogoo service can be applied by developers either through a one-to-one deal between publisher and gamer or through a subscription option. The company claims a proven technology model through Beta testing with over 170,000 users. Based in Vienna, Fatfoogoo employs 15 individuals.

Digital River (www.digitalriver.com)
Joel Ronning founded Digital River in 1994 at a time when e-commerce was barely a viable concept, let alone a burgeoning business. Today the company is a leader in providing e-commerce solutions to clients in the software and technology sectors. Website and store design, hosting, product delivery, marketing, and order management are just some of the services Digital River offers. 2008 earnings were pegged at more than USD 394 million, with customers of computer security company Symantec responsible for nearly 40% of Digital River’s processed transactions. The company employs 1,300 and is based in Eden Prairie, MN, USA.

gamma capital partners (www.gamma-capital.com)
gcp in one of Austria’s leading venture capital firms, specializing in the technology sector since 2002. gcp currently manages more than 20 projects from for funds and has helped companies like Centerpoint, On Demand, and Xactdata get off the ground.

gcp’s team of investment professionals pursue projects with great potential and management teams that are honest, frugal, and prepared.

Of the company’s seven total funds, four have closed while three remain open with €80 million in combined capital.