A record year for deals in the video game industry continues. Keywords Studios has acquired Mighty Games for up to $6.9 million. While many of the acquisition deals that have been headline grabbers were for multi-billions, the smaller end of the market continues to be red hot.
The Keywords/Mighty deal is split into an initial cash consideration of $3.3 million and $800k in ordinary shares; and, depending on company targets being met, a further $2.8 million may be awarded.
Last month, Keywords announced acquisition plans for Forgotten Empires. That deal has finalized and is worth up to $32.5 million.
As mentioned earlier, most of the larger deals in the industry are getting all the press. However, the sub-billion-dollar acquisition market continues to be a major deal driver, and growth by acquisition continues to be a viable long-term strategy.
According to a blog post on August 9th by international law firm, Bryan Cave Leighton Paisner, “The drivers for continued consolidation in gaming are clear. In an industry where talent attrition is the norm, it makes business sense for both conglomerates and growing developers and software providers to shun in-house, organic growth and opt instead for acquisitions and buying instant capability and market access.”
Notably, BCLP says, “Even after accounting for the mega-deals, M&A in gaming is expected to continue trending upwards. Some commentators predict that deal volume will exceed US$150 billion this year.”
Read more about Keywords latest acquisition, HERE
Or discover other potential buyout targets, HERE
Source: https://www.gameshub.com/news/news/keywords-studios-melbourne-mighty-games-acquisition-25637/