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Embracer taking over Vertigo Games Holding
Posted on Wednesday, 16 September 2020 12:04
Embracer has picked up Dutch virtual reality (VR) games developer Vertigo Games Holding.
The buyer, which is carrying out the deal via its Koch Media subsidiary, will pay EUR 40.00 million in cash and issue B shares worth EUR 10.00 million as consideration.
In addition, an earn-out of EUR 65.00 million in cash and stock may be due, subject to certain targets related to earnings and title releases being met over a period of 10 years.
The buyer will also assume cash totalling EUR 5.00 million.
Commenting on the acquisition, Vertigo Games chief executive Richard Stitselaar cited the rapid growth of the VR market as a factor behind the decision to buy, saying that the move will enable it to accelerate its growth in this area.
His counterpart at Koch Media, Dr Klemens Kundratitz, added: “We have been monitoring the VR market over the past years very closely. We feel that now is the right time to extend our groups activities into this fast-growing market.”
He noted that following the takeover, “Together, we will push the boundaries of VR gaming even further, combining our strong global development and publishing network with their specialized VR games expertise.”
Zephyr, the M&A database published by Bureau van Dijk, shows Embracer has already completed one acquisition this year, having purchased the assets of Saber Interactive for USD 525.00 million, including an earn-out component, in February.
Rotterdam-headquartered Vertigo Games was founded in 2008 and now employs 50 people, including 37 developers.
Since 2013, it has been solely focused on the VR segment, while its operations are divided into development, publishing and licensing units and it claims to have sold some 1.50 million games.
The firm’s most well-known title is Arizona Sunshine, a four-player co-op zombie shooter, which it claims is the most played game in VR arcades.
It is currently developing After the Fall, a first-person shooter which has been touted by the company as one of the world’s most anticipated VR releases.
© Zephus Ltd