Digital Devolver joins the craze for consolidation with the acquisition of System Age Software for an amount of up to $40 million.
The first part of the cash and stock deal is worth $22.0 million, while the rest will come in the form of bonuses.
Established in 2014, System Era is an award-winning multi-platform video game developer based in Seattle with a team of 50 people.
System Era is the developer behind Astroneer, a highly successful space exploration-themed multiplayer sandbox adventure game, for which it owns 100% of the intellectual property.
Astroneer is an expandable gaming title released in 2016, with a proven track record of player retention and engagement through regular content releases and updates. To date, Astroneer has generated over $87 million in gross revenue and has been played by over 13 million people.
The acquisition represents a strategic opportunity for Decentralization to expand beyond its core strength of high-end indie titles, leveraging System Era’s knowledge of developing expandable game styles, as well as its live operating technology and intellectual property existing, the companies said.
Devolver will capitalize on System Era’s development expertise to create quality, community-focused, long-lived titles, as proven by the success of its debut title Astroneer, a game that reached its 2022 milestones. highest annual sales figures.
System Era’s founding team comes from a triple-A background, having held leadership roles at Ubisoft and Microsoft, working on franchises such as Halo, Assassin’s Creed and Watch Dogs, and instilled a strong team culture which aligns with Devolver Digital.
According to Devolver’s accounting policies, based on an estimated restatement of System Era management’s unaudited figures, System Era generated approximately $7 million in revenue and adjusted earnings before depreciation and amortization. interest taxes (“EBITDA”) of approximately $3.8 million, over the preceding 12 years. month until June 30, 2023.
Douglas Morin, CEO of Devolver Digital, said in a statement: “What excites me most about System Era is the cultural and strategic fit with Devolver. This is a very experienced and talented group of developers who come with a proven success, Astroneer, in its eighth year. Their expertise in developing expandable games opens up a new player base and revenue stream for Devolver. We look forward to bringing fun to new players in new and innovative ways – and especially to welcoming the team to Devolver in the days and months to come.
According to Devolver’s accounting policies, the acquisition is expected to contribute positively to EBITDA in the financial year ending December 31, 2024, being the first full year of ownership.
Brendan Wilson, CEO of System Era, said in a statement: “Devolver and System Era have long been mutual admirers. We’ve always viewed the Devolver banner as a mark of quality, but it also represents an industry-unique approach to game development and publishing. Their developer-focused focus allows bold and unorthodox ideas to thrive. We’re excited to join a confederation of like-minded people, where System Era games will have the support needed to reach a global audience, and where our developers will continue to work within the culture they love.
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