September 18 (SeeNews) - Swedish free-to-play powerhouse of gaming studios Stillfront Group said it signed an agreement to acquire 100% of Croatian developer and publisher of mobile games Nanobit, in a deal valued at up to $148 million (125 million euro) on a cash and debt free basis.
The transaction will be executed in two tranches, with 78% of Nanobit purchased in the first tranche for an initial consideration of some $100 million and the remaining 22% changing hands in the second tranche for a consideration not exceeding $48 million, Stillfront said in a statement on Thursday.
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The second tranche consideration will depend on Nanobit's EBITDA in 2021 and 2022, and will be payable by Stillfront in 2023.
In both tranches, 70% of the amount will be payable in cash and the remaining 30% in newly issued Stillfront shares.
The closure of the first tranche of the transaction is expected to take place on September 30, 2020.
"Stillfront considers that the Transaction will result in an attractive earnings multiple for Stillfront in line with previous acquisitions and should be seen in the context of Nanobit’s rapid growth," Stillfront said.
It added that Nanobit is expected to generate some 640 million Swedish krona in net revenue in 2020, with 17-22% in adjusted EBITDA margin.
Nanobit is being sold by its founders and main owners, Alan Sumina and Zoran Vucinic.
The Zagreb-based company is an established studio with 29 titles released, whereof 10 apps and 19 games, and more than 145 million lifetime downloads. It focuses on narrative lifestyle simulation role playing games (RPG) targeting a female audience.
($=0.844586 euro)