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(Alliance News) - Team17 Group PLC on Thursday announced two new acquisitions, of US mobile games publisher The Label and existing third party intellectual property Hell Let Loose for up to a total of GBP75.6 million in cash and shares.
Also on Thursday, the Nottingham-based video game development company said it expects revenue and adjusted earnings before interest, taxes, depreciation and amortisation to be ahead of the year before as well as management's expectations.
Looking ahead, the company said it has entered 2022 with confidence, with a full contribution from StoryToys and the new acquisitions set to be earnings accretive.
"We are pleased with the 2021 performance, in which we continued to execute on our highly ambitious pipeline alongside completing the acquisition of StoryToys. Bringing StoryToys into the Team17 family sees us align our growth ambitions with their hugely talented team and is a clear marker for our future growth strategy," said Chief Executive Officer Debbie Bestwick.
Shares in Team17 were up 5.5% at 812.00 pence on Thursday afternoon in London.
For The Label, Team17 will acquire the indie publisher for an initial payment of USD24.0 million, with USD18.0 million in cash, and the issue of 604,543 shares at a price of 734.44 pence.
There is also a potential earn-out consideration of USD16.0 million, to be paid within three years based on meeting certain Ebitda performance targets. The acquisition is expected to allow Team17 to extend its reach into the high growth mobile subscription segment of the video game industry.
Meanwhile, Hell Let Loose, a third-party title and multiplayer first-person shooter, will be acquired and integrated into Team17's first-party portfolio for an initial payment of GBP31 million.
The initial payment comprises GBP19.8 million in cash and the issue of 1.5 million shares at a price of 734.44p each. Subject to meeting revenue performance targets over the next two years, Team17 could pay up to an addition GBP15 million in cash.
Hell Let Loose was created by Sydney, Australia-based developer Black Matter Studios, and was co-developed and published on multiple platforms by Team17.
"In addition, we are delighted with the acquisitions announced this morning. These further support our content and people growth plans. We look forward to working with them as part of our growing Team17 Group in 2022," Bestwick continued.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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