Sin City publisher acquired by SilverBirch

Canadian publisher SilverBirch has bought Sin City publisher Red Mile, the company's announced.

The buyout's a complete affair: 100 percent of Red Mile's stock has changed hands.

"SilverBirch's strategy to grow through strategic acquisitions is a vision that Red Mile shares and one that we can contribute to in a meaningful way to position the combined entity as a leading integrated video game publisher," said Red Mile boss Chester Aldridge.

"By combining Red Mile's development, publishing and licensing strengths with SilverBirch's proven ability to operate and grow its business, we expect to deliver strong growth for the company in the years ahead."

Press release after the link.

Press Release Source: Red Mile Entertainment, Inc.

Red Mile Entertainment to Merge With SilverBirch
Tuesday October 14, 9:00 am ET

Merger Between Leading U.S. and Canadian Video Game Publishers Provides Shareholder Liquidity, Resources and Enables Growth

SAN ANSELMO, CA--(MARKET WIRE)--Oct 14, 2008 -- Red Mile Entertainment, Inc. (OTC BB:RDML.OB - News), a worldwide developer and publisher of interactive entertainment software, today announced it has signed a merger agreement with SilverBirch Inc. (CDNX:SVB.V - News), a Toronto-based game software developer and publisher, pursuant to which SilverBirch will acquire 100% of the stock of Red Mile.

The merger is expected to provide a number of immediate benefits to the combined companies as they continue to grow their respective publishing businesses. SilverBirch, with offices in Toronto, Dallas and the Netherlands, is a fast-growing publisher of handheld, mobile and massively multiplayer online games ("MMOG"). Red Mile is a California-based video game publisher with worldwide rights to established brands including the "Heroes" flight combat franchise. "Heroes of the Pacific" sold over 600,000 units and the sequel, "Heroes Over Europe," is expected to ship in March 2009. SilverBirch's financial and operational elements complement Red Mile's expertise as a licensor, developer and publisher of PC and console games.

The transaction is subject to a number of conditions, including U.S. regulatory, shareholder and Toronto Venture Stock Exchange approvals.

"SilverBirch's strategy to grow through strategic acquisitions is a vision that Red Mile shares and one that we can contribute to in a meaningful way to position the combined entity as a leading integrated video game publisher," said Chester Aldridge, CEO of Red Mile. "By combining Red Mile's development, publishing and licensing strengths with SilverBirch's proven ability to operate and grow its business, we expect to deliver strong growth for the company in the years ahead."

"Red Mile's position as a strong console publisher of both original and licensed intellectual property complements our core focus in the video game industry," commented Derek van der Plaat, CEO of SilverBirch. "With our publishing strengths in Massively Multiplayer Online Games, PC and handheld games, the merger with Red Mile further rounds out SilverBirch's capability as a comprehensive publisher."