While much attention has been paid to mega-deals in the gaming industry
Like the Microsoft/Activision deal, and the Take-Two/Zynga deal, a number of smaller M&A deals have quietly flourished.
ESE Entertainment has announced the completion of its 100% acquisition of GameAddik.
What makes this deal so special is GameAddik is not actually a game developer or publisher.
Instead, it’s a game-tech company that focuses on creating and implementing a technology that helps developers and publishers reach more gamers and generate more downloads and revenue.
It’s called “performance model technology.”
Because of its technology, the company, Game Addik, generated $24 million in revenue, with income from operations at an unaudited $4.7 million in 2020.
2021 numbers are unavailable at this time.
ESE Entertainment expects the acquisition will help better position the company in the esports and gaming space, while adding GameAddik’s existing client base to the ESE portfolio.
“The completion of this acquisition signifies a new phase in the growth trajectory of ESE. By adding a new business unit with a proven history of strong financial performance, we are ready for rapid scale. We now have a significant physical presence in Montreal, Canada, that will accelerate our North American roll-out.
“We are also excited to have GameAddik’s world-class executive team join our family as we continue to develop and scale ESE. We believe this acquisition will supercharge our existing business and take it to the next level”, said Konrad Wasiela, CEO of ESE.
Eric Jodoin, CEO of GameAddik, said, “With our developed technology and large-scale user acquisition expertise, we are confident the synergy created by the combined company will bring the group to another level.”
As noted earlier, much of the attention being paid to the industry has been focused on major M&A deals. However, the smaller end of the market has been on fire as well.
2022 will go down as the greatest year ever (until perhaps 2023) for M&A deals in the gaming industry. And investors should be aware of all potential buyout targets as consolidation continues.
Keep a lookout for more deals on the smaller end.
Game-tech companies in particular, like we saw with GameAddik, may be seen as highly attractive assets for acquisition.
Read more about the GameAddik acquisition, HERE
Or better….
Discover a small game-tech company with patents in eCommerce, HERE
Source: https://finance.yahoo.com/news/ese-completes-acquisition-gameaddik-110000190.html