Global game studios coalition the Stillfront Group has announced today it has acquired 100% of the shares of multiplayer RTS-focused development studio Kixeye for up to $120 million.
The transaction is expected to complete by July 1 of this year at the latest, with $90 million to be paid up front in cash and further cash earn-outs possible (up to $30 million) if certain financial goals are met for 2019.
To make the purchase, Stillfront has taken out a bridge loan from Swedbank, which it will repay over 12 months using equity it plans to raise in the near future.
Stillfront Group will take ownership of Kixeye's four live games: Battle Pirates, War Commander, Vega Conflict, and War Commander: Rogue Assault, though Kixeye's key employees (including head of studio Clayton Stark) will continue to actively manage the properties. The in-development title Kingdom Maker will be divested to Global Worldwide.
"Kixeye fits perfectly into Stillfront's growth strategy by broadening our portfolio of studios and games with characteristics that drive long term gamer relations," said Stillfront CEO Jörgen Larsson. "Kixeye's games portfolio of four strong IPs and a well-known brand is a very good contribution to our existing game portfolio and increases the potential for synergies within the Group."
Last year, Stillfront more than doubled its profits after a year full of acquisitions in which it picked up Goodgame Studios, Imperia Online, and Playa Games and expanded its portfolio to 30 live games.