SouthPeak Interactive to Go Public Through Acquisition

Authored by Mark Hefflinger on April 28, 2008 - 7:30am.

Midlothian, Va. - Moving a major step closer to completing a deal it first announced in January, video game publisher SouthPeak Interactive said on Monday that it has agreed to acquire a majority stake in Global Services Partners Acquisition Corp. (GSPAC) in a deal that will take the company public.

GSPAC, a shell company formed exclusively to create a business combination, trades on the OTC Bulletin Board.

Under the deal, which values SouthPeak at $35 million and includes related institutional financing, GSPAC will change its name to SouthPeak Interactive.

SouthPeak's current executive management team of Terry Phillips and Melanie Mroz will then become, respectively, the chairman and CEO of the new company.

"These transactions will bring SouthPeak public at an opportune moment in the video game industry," said Phillips.

The acquisition is expected to close in May.

Southpeak exclusively utilizes independent studios to source and produce all of its video games, minimizing the company's overhead costs.