tinyBuild buys Russia based Bad Pixel for $17.1 million

LONDON, UK: tinyBuild, a leading video games publisher and developer with global operations, announced the acquihire of Bad Pixel, the development studio behind the very popular open-world game Deadside.

Bad Pixel is based in Russia with seven developers currently.

Deadside is a hardcore multiplayer shooter with vast gaming possibilities, balancing the dynamics of a first-person shooter with survival elements. The post-apocalyptic world of Deadside realistically pictures vast spaces full of bushy forests, sparkling water streams and abandoned settlements in the ruins of a dead civilisation.

The game launched in early access with an area of 25 km2, which will grow to ​​about 225 km2 for the full release.

The initial consideration for Bad Pixel by tinyBuild will be $6.5 million, including $4.9 million in cash and $1.6 million in newly issued tinyBuild shares.

Deferred payments over the following three calendar years will be settled with newly issued tinyBuild shares up to $10.6 million, subject to certain financial targets being met. The total maximum consideration is up to $17.1 million.

The core of tinyBuild’s strategy is to expand its range of games, adding promising IP with the potential to create new franchises. By bringing the talented developers of Bad Pixel and the Deadside IP in-house, tinyBuild expects to create value for shareholders in the long term.

Bad Pixel generated c.$3.0 million of EBITDA[1] in 2020, following the early access release of Deadside. tinyBuild expects that the deal will be marginally accretive in 2021, a year of investments, with greater potential for return in the following years.

Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented: “As a public company, we have a powerful platform from which we can deliver on our organic and M&A growth ambitions. We are delighted to announce the acquisition of Bad Pixel, our fourth acquihire this year, as we continue to scale up our ambitions. We have known the Bad Pixel team for over two years, and we are extremely excited to be working with them.

“Our goal is to expand our position as a leading global developer and publisher, focusing on IP ownership while creating long-term scalable franchises across multiple media formats. In addition, we are actively looking at a number of other potential acquihires and larger scale acquisitions to enhance our strategic and operational position.”