Midlothian, Va. - Video game developer and publisher SouthPeak Interactive announced on Thursday that it has agreed to merge with Global Services Partners Acquisition Corp. (GSPA), a publicly-traded acquisitions firm, in a deal that values the company at $31 million.

Under the terms, GSPA will provide 5 million in shares and $5 million in cash to SouthPeak, whose management will own about 42% of outstanding shares in the new company, SouthPeak Interactive Corp.

The Virginia-based company, which publishes games for all major consoles, handhelds and the PC, expects $30 million in revenues and earnings of $4.5 million for its current fiscal year, which ends on June 30.

"The financial resources provided by this transaction will allow us to accelerate our strategy of expanding our product portfolio and continue to outpace the industry in terms of top and bottom-line growth," said SouthPeak CEO Melanie Mroz.

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