Weekly News Digest #19
# of announced deals
7
announced deals’ size
$37.8m
# of closed deals
7
Hi all,
The last few weeks have been very modest in terms of investment and M&A activity, which is why it’s been quite a while since we featured a proper analysis. Also, we are currently finishing our Q1’23 Gaming Deals Report, so be sure to follow us on Twitter, LinkedIn, and Telegram, not to miss it.
Meanwhile, you can learn about the deals of the previous week in the “Notable Transactions” section below.
We want to thank MGVC and The Games Fund for supporting this digest.
| NOTABLE TRANSACTIONS |
MERGERS & ACQUISITIONS
UK-based gaming tech company Keywords Studios (LON: KWS) has acquired a US-based games developer Hardsuit Labs for up to $15m, including an initial consideration of $8.25m, with $6.6m paid in cash and $1.65m paid in shares, as well as a potential earn-out of $6.75m, paid in a mix of cash and shares. As a part of the deal, Sweden-based publisher Paradox Interactive (STO: PDX) sold its 33% stake in the studio for $4m. Hardsuit Labs is an outsource games developer that worked on such franchises as Call of Duty, Bioshock, and Gears of War. For Keywords, this acquisition is another logical step in increasing its presence in the US, as well as an opportunity to expand its workforce with an experienced team of 70 game developers.
US-based competitive video game and esports organization Super League Gaming (NASDAQ: SLGG) has acquired US-based Roblox games developer Melon for an undisclosed sum. Melon is the company behind several Roblox experiences, such as Mattel, Chipotle and PacSun. The studio is engaged in creating online events, including music ones, which perfectly aligns with Super League’s business model. The company is building metaverses and hosting multiple online events, and the acquisition allows it to expand its capabilities.
VENTURE FINANCING
US-based real-money gaming engine developer Triumph has raised $14.1m in two funding rounds. The company has raised $3.9m in a Seed funding round and $10.2m in a Series A funding round, led by Flux and General Catalyst accordingly. Other investors include Great Oaks, Heroic Ventures, Magic Fund, and others. Triumph’s main product is an eponymous engine and SDK that allow game developers to add real-money tournaments to their games. The engine is currently used for mobile games only, but the developers aim to create a multiplatform SDK.
US-based Web3 game developer Aether Games has raised $4.5m in a Seed funding round. The money comes from several investors, including MystenLabs, Polygon, Magic Eden, Polkastarter, Cogitent, Ultra, GSR, EMURGO, Master Ventures, and Eclipse. The company’s main title is Cards of Ethernity, an NFT collectible card game, which is currently in beta launch. The studio has also developed Gates of Ethernity, an app that allows users to view their NFTs in AR. The game is planned to be launched in late 2023.
Canada-based digital media and entertainment company PopReach (CVE: POPR) has raised $1.4m in a Series B+ funding round. The company owns an eponymous mobile games publisher that focuses on F2P franchises, such as PayDay, The Smurfs, Kitchen Scramble and others.
US-based user-generated games developing platform Overplay has raised $2.8m in a funding round, with $1.8m coming from institutional investors, including Village Global, Sound Media Ventures, Plus Eight Equity Partners, Gaingels, Red & Blue Ventures, Band of Angels, Stampede Ventures, Outlander Capital, and more. Additional $1m has been raised in a community investment round. The company’s main product is an app that allows its users to convert their videos into games.
