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Fragbite Group has acquired Playdigious for $10.4m

M&A | ANNOUNCEMENT DATE: 01 JUN 2021
WRITTEN BY | 08 Jun 2021
Fragbite Group has acquired Playdigious for $10.4m
M&A

💵 Acquisition

  • Sweden-based group of gaming and esports companies Fragbite Group (also known as FunRock) has acquired 100% of indie games publisher Playdigious for up to $10.4m (€8.5m) in cash and shares, including:
    • $6.1(€5m) upfront, paid 60% in cash and 40% in the form of newly issued Fragbite shares. The issued shares are subject to a lock-up of 12 months
    • Several earn-out considerations for a total of $4.26m (€3.5m), payable in the period from 2021 to 2023:
      • For the split financial year 2020/21, an additional earn-out of $1.82m (€1.5m) may be paid, of which 50% is in cash and 50% in newly issued shares, if the company achieves certain undisclosed financial targets
      • For the split financial year 2021/22, an additional earn-out of $1.22m (€1.0m) may be paid, of which 50% is in cash and 50% in newly issued shares, if the company achieves certain undisclosed financial targets
      • For the split financial year 2022/23, an additional earn-out of $1.22m (€1.0m) may be paid, of which 50% is paid in cash and at least 50% in newly issued shares, if the company achieves certain undisclosed financial targets
  • Based on the expected Playdigious’ financials for the year of 2020/21 (Revenue of $4.86 (€4m) and EBITDA of over $730k (€600k)) the transaction multiples are:
Multiples w/o Earn-outs w/ Earn-outs
EV/Revenue 1.2х 2.1х
EV/EBITDA 8.3х 14.2х

💠 Strategic Rationale

  • Playdigious will help Fragbite Group open a new publishing and indie games division
  • Experienced entrepreneurs Xavier Liard and Romain Tisserand will lend their cutting-edge expertise to their new parent company

🎲 Product

Founded in 2015, Playdigious is known for porting premium indie games to mobile. Some of the recent notable ports include:

  • In April 2021, the company ported Shiro Games’ RTS in a Scandinavian setting Northgaard to iOS

  • In February 2021, Playdigious launched Souls-like 2D action Dead Cells from Motion Twin on mobile in China. The game has been sold over 1 million units there and is undergoing strong growth right now

Some of the games ported by the company to mobile also include: Card game Cultist Simulator, puzzle The Almost Gone, simulation game Turmoil, and RPG Evoland. Playdigious will help Fragbite Group open new publishing and porting division for indie titles.

Sources: FRAGBITES

Written by Andrei Zubov

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Fragbite Group
  • Founded in 2015
  • Headquarters — Stockholm, Sweden
  • Founded by David Wallinder and Magdy Shehata
  • Team of approximately 30 people
  • Digital gaming entertainment group with subsidiaries active in the mobile gaming and esports industry
Playdigious
  • Founded in 2015
  • Headquarters - Montpellier, France
  • Founded by Xavier Liard and Romain Tisserand who previously founded DotEmu
  • Multiplatform indie games publisher
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