LONDON, UK: Team17 has acquired The Label, a USA based indie publisher specialising in mobile subscription games content for an initial consideration of $24.0 million (£17.76 million) with additional earn out consideration of up to a maximum of $16.0 million (£11.84 million) over the next three years.
The total consideration of up to $40.0 million (£29.6 million) will be paid through a combination of cash and shares, which are subject to a 12 month lock-in period.
The acquisition’s initial consideration will be satisfied through a combination of $18.0 million (£13.32 million) in cash from existing reserves and the issue of 604,543 consideration shares, valued at $6.0 million (£4.44 million), based on an issue price of 734.44 pence which are subject to a lock-in period of 12 months from the date of the acquisition.
A further potential payment of up to $16.0 million (£11.84 million) will be paid within three years based on meeting challenging EBITDA performance targets, paid through a combination of cash and shares.
The acquisition represents a significant strategic milestone for Team17, enabling Team17’s Games Label to extend its reach into the high growth mobile subscription segment of the games industry, and further build on its reputation as a major player in the wider digital entertainment landscape.
Established in 2014, The Label is a leading independent games publisher based in San Francisco. As a launch partner to both Apple and Google subscription gaming services, The Label is considered a pioneer within the subscription games market.
The acquisition of The Label will further expand Team17’s capabilities across the digital entertainment space, consolidating the Group’s position as a leading gaming and entertainment business and providing a wealth of opportunities for significant further growth.
Michael Pattison, CEO of Team17 Games Label, commented: “We are absolutely thrilled to be joining forces with The Label’s entrepreneurial team, who are true pioneers in the delivery of quality mobile subscription games and technology. We are excited to tap into their unrivalled market and gaming experience to further take advantage of this growing market.
“The Label is a fantastic addition to the Team17 family, creating an indie game powerhouse across PC, console and mobile platforms. We look forward to helping them build on their impressive track record of success, further enabling them to scale even greater heights in support of our ambitious growth aspirations. “
Joshua Babich, General Manager and Vice President, commented: “It’s an honour to join the world’s leading independent games publisher. Team17 has been a pillar of excellence for over three decades for gamers and creators, bringing some of the most imaginative and unique titles to life. With their support the sky’s the limit and our partners can feel confident our combined leverage will accelerate success for all.
“Joining the Team17 family opens up unprecedented doors for us all. While we’ve carved out a strong foothold in the mobile subscription space, this allows us to instantly expand our market reach in ways that just wouldn’t have been possible before. We are delighted to be part of a Group that puts games development and creativity first!”
Team17 is a global games entertainment label and creative partner for independent (“indie”) developers, focused on the premium, rather than free to play market, and creating games for the PC, console, mobile and tablet gaming markets and developer of educational entertainment (“edutainment”) apps for children.