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