SYDNEY, AUSTRALIA: iCandy Interactive Ltd (ASX:ICI) has signed a binding agreement to acquire a 60% stake in Flying Sheep Studios GmbH for total consideration of EUR 2.0 million (AUD3.01 million).

Flying Sheep Studios is a gaming backend technology development company founded in 2014 in Cologne, Germany and led by a team of experienced software engineers.

Having delivered over 200 games to satisfied clients including DreamWorks Animation, Flying Sheep Studios has an impressive track record of game development and gamification with more than 50 brands worldwide. Flying Sheep Studios recorded more than EUR 321,000 (AUD484,000) in revenue in its fiscal year ending December 2021.

Flying Sheep Studios’ inhouse HTML5 developer capabilities provide for on time, quality games with its web technology that is size- and speed-efficient with cleaner and neater code, as well as reduce load on servers. In addition, HTML5 supports rich media elements which enable media material plays and reduce plugin needs; and designed for cross-platform usability without downloads nor installation.

Flying Sheep Studios has over the years developed a wide range of proprietary software to improve capabilities of HTML5 beyond traditional 2D technology. With its inhouse developer tools, Flying Sheep Studios has progressed ahead to building games that provide fluid 3D graphics that rival native apps.

The acquisition of Flying Sheep Studios marks iCandy Group’s footing in the European gaming market. The European gaming market is projected to be worth USD27.4 billion in 2022 1 in the Video Games segment.

s part of the acquisition arrangement, the three (3) Founders of Flying Sheep Studios have each signed a 3-year management contract to continue to lead Flying Sheep Studios post-acquisition.

If any of the Founders terminates the management contract prior to the 3-year period, iCandy Group may clawback the Cash Consideration based on the number of months yet to be served by such Founder(s), and in addition all Consideration Shares that are yet to be issued to such Founder(s) shall be forfeited.

Barring any unforeseen circumstances, the transaction is expected to close within the second quarter of 2022 (“Closing Date”). Other than the Company completing due diligence on Flying Sheep Studios, there are no other conditions precedent to completion and the binding agreement otherwise contains terms and conditions considered standard for an agreement of its nature.