The Stockholm-based game studio Fantasma Games AB has entered into an agreement to acquire the game producer Wiener Games OOD. The deal expands Fantasma Games’ existing operations from only developing games in its own name, to also producing games for others.
The current deal means that Fantasma Games will be able to increase the pace of game development at the same time as Wiener Games’s consulting business provides a completely new revenue stream.
Wiener Games was founded in 2014 and is both growing and profitable. The company is headquartered in Sofia, Bulgaria and since 2018 the company has had an average turnover of approximately EUR 350,000 on an annual basis. Wiener Games, which has 19 employees, operates as an independent producer of games for game studios and operators such as Relax Gaming, Leo Vegas, Microgaming, and Skywind.
– We have begun to suffer from the pleasant problem of not being able to fully meet customer demand for new games. Wiener Games, for its part, have a strong production apparatus, but a limited distribution capacity. The acquisition solves both our problems while adding a new revenue stream for us by way of a completely new business model, says Fantasma Games acting CEO of Jacob Sachs.
For Fantasma Games, the acquisition also means that the company will be able to make exclusive games for a select group of operators without any added resource load on the Swedish part of the business. It is also expected that Wiener Games will contribute positively to Fantasma Games’ results.
– We are a profitable production company that makes games for some of the world’s largest casinos. Through Fantasma Games, which has made a name for itself in the industry in a short time, we will further broaden our network of contacts and also be able to create and distribute our own games, says Wiener Games’ CEO Konstantin Dinev.
The deal signed today is worth EUR 700,000 (EUR 500,000 in cash and EUR 200,000 in newly issued shares) on a debt-free basis. The deal also includes an earn-out arrangement, based on future results (EBIT 2021 – 2024), which can amount to a maximum of EUR 1.8 million and be paid either through newly issued shares in Fantasma Games or in cash, as decided by the buyer. The closing of the transaction is set for October 2021 and is subject to customary closing conditions.
Source: official website Fantasma Games