Weekly News Digest #4

Miniclip Acquires Easybrain for $1.2B

UPD: Sweden-based gaming giant Embracer Group (STO: EMBRAC B) has closed the divestment of Cyprus-based mobile games developer Easybrain to Switzerland-based mobile gaming company Miniclip for $1.2B. Please read more details about the divestment in our material.

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MERGERS & ACQUISITIONS

Singapore-based outsourcing company Virtuos has acquired three game development outsourcing firms: Netherlands-based Abstraction, US-based Pipeworks Studios (previously acquired by Jagex on Jul’22), and a majority stake in Canada-based Umanaïa Interactive. The financial terms of the deals remain undisclosed. These acquisitions increase Virtuos’ total headcount from 900 to 1,200 employees across 16 studios in Western markets. The move aligns with the company’s growth strategy to establish itself as the leading outsourcing game developer. This transaction follows Virtuos’ recent acquisitions of Third Kind Games in Aug’24 and Beyond-FX in Mar’24.

VENTURE FINANCING

UK-based outsourcing gaming company Airship Interactive has received an undisclosed six-figure investment from FW Capital through its NPIF II-FW Capital Debt Finance fund. The funds will support the opening of a new office in the UK. Airship Interactive, which provides development services for clients such as Disney, Microsoft, Blizzard, 2K Games, and Sony PlayStation Studios, raised $540k in Jul’22.

PUBLIC OFFERINGS

India-based digital gaming and esports company Nazara Technologies (NSE: NAZARA) has raised $57.2m (INR 495 crore) through a preferential issue of 50 million shares at INR 990 per share or 5.4% of the stake. Axana Estates, along with other participants of the deal highlighted in a press release, will also have the ability to acquire an additional 26%, resulting in a potential total ownership of 61.5% of Nazara’s shares. The funding will fuel the company’s M&A activity and international growth. Axana Estates will primarily acquire the shares. In addition, Nazara Technologies has acquired the CATS: Crash Arena and King of Thieves titles from Spain-based mobile games developer ZeptoLab for $7.7m. These transactions follow Nazara’s recent $100m fundraising via preferential shares issuance from SBI Mutual Fund in Nov’24 and a $7.5m investment in esports company Nodwin Gaming.