Just a few years ago, each week seemed action-packed with M&A news. Embracer Group would announce dozens of acquisitions at once, Keywords Studios was snapping up outsourcing firms of all kinds, Stillfront was expanding its global presence, and MTG was further venturing into gaming.
Many gaming companies have been aggressively reshaping the market landscape with acquisition-driven strategy. This article will focus on Embracer Group, Keywords Studios,Stillfront, Team17, MTG, PulluP, and EG7—the seven European public gaming companies that executed the most deals from 2020 to the present.
The peak of M&A activity between 2020 and 2022 was partially driven by the gaming industry’s rapid growth during global lockdowns, as demand for in-home entertainment soared and many companies leveraged their highly valued shares as a purchase consideration to pursue inorganic growth strategies. However, as the post-pandemic environment brought new challenges—such as declining valuations, widespread layoffs, and an increasingly challenging market—the fortunes of these companies shifted. This article examines how these market leaders navigated the downturn and its implications for the broader industry.
In this article, we’ll cover:
— The leading European gaming M&A powerhouses and their landmark acquisitions;
— The financial impact of these deals on acquirers;
— Stock performance trends during and after the M&A boom;
— Key lessons from the rise and challenges of Europe’s M&A boom.
For a concise summary, refer to the downloadable PDF recap:
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India-based esports company Nodwin Gaming, a subsidiary of Nazara Technologies (NSE: NAZARA), has acquired India-based marketing agency Trinity Gaming for $2.8m. Part of the transaction, $560k, will be funded by Nazara, while the remaining amount will be covered through newly issued Nodwin Gaming shares. This acquisition is set to enhance Nodwin’s marketing capabilities and facilitate its expansion into Asia and MENA markets. Trinity Gaming, a Creator Service Provider for YouTube, works with prominent clients such as KRAFTON, Nvidia, and Riot Games.
China-based gaming giant Tencent (SEHK: 700) has acquired an additional 37% stake in China-based mobile games developer Kuro Games from Hero Entertainment, bringing its total ownership to 51.4%. The financial terms of the transaction were not disclosed. Tencent acquired a 14.4% stake in the company in Mar’23. Kuro Games, known for developing Wuthering Waves and Punishing: Gray Raven multiplatform titles, will continue to operate independently despite Tencent’s majority ownership.
VENTURE FINANCING
An Israel-based platform for mobile game publishers Appchargehas raised $26m at a $100m valuation in a Series A funding round led by Nordic VC Creandum, with participation from Supercell, BITKRAFT Ventures, Moneta Ventures, Play Ventures, Glilot Capital, and other investors. The funds will be used to scale the company’s web shop offerings and expand its third-party payment services. Appcharge provides mobile game developers a platform offering gamified stores, monetization solutions, and user retention tools. The company is processing $200m in client payments annually, including Huuuge Games, AppLovin, and Product Madness.
Germany-based gamified project management platform Codeckshas secured $1.1m (€1m) in a combined funding round. The company received $740k (€700k) as a grant from the European Union’s Creative Europe MEDIA program, with the remainder contributed directly by Codecks. The funds will further enhance the company’s platform, which leverages a card game-inspired deck system for managing projects. Codecks serves clients such as Unity, GRAVITY, Warpfrog, Toukana Interactive, and Free Lives.
PUBLIC OFFERINGS
France-based board games publisher Asmodee, an Embracer Group (STO: EMBRAC B) subsidiary, has raised $987m (EUR 940m) through a mix of fixed and floating rate senior secured notes maturing in 2029. Additionally, the company has secured a €150m revolving credit facility (RCF), which holds equal collateral rights but grants enforcement priority to RCF lenders. The newly raised funds will primarily repay Asmodee’s $952m (EUR 900m) bridge facility. This financing activity comes as the company prepares for its separation from Embracer Group, scheduled for Apr’25, amid plans to receive a $400m loan from the parent company.
India-based digital gaming and esports company Nazara Technologies (NSE: NAZARA) has raised $100m through a preferential equity issue to SBI Mutual Fund. The funds will be used to drive the company’s M&A initiatives. This marks the fourth private equity issue by Nazara, following a $26.5m raise in Oct’24. With this latest round, the company’s total fundraising in 2024 amounts to $265m.
Sweden-based mobile-focused games developer and publisher Stillfront Group (OM: SF) has issued senior unsecured bonds valued at $77.3m (SEK 850m). The bonds carry an interest rate of the 3-month interbank rate plus 3.65%, with a maturity date set for Sep’29. The proceeds will be used for general corporate purposes, including partial debt refinancing, M&A activities, and earnout payments. This issuance comes as the company implements a restructuring program announced in Sep’24.
Canada-based esports betting company Rivalry, a subsidiary of investment and betting firm PMML, has raised $1.9m through a non-brokered private placement. The round involved the issuance of 13 million Subordinate Voting Shares at $0.15 per share. The subscribers primarily included individuals close to the company’s management. The funds will be allocated for general corporate purposes. Rivalry retains the option to conduct additional placements, with a potential fundraising capacity of up to $3m.
