There are no material conditions for the finalisation of the Transaction. Completion of the Transaction is expected in December 2020.
Modern Times Group MTG AB (publ) (“MTG”) has acquired an additional 17% of the shares in leading German games developer and publisher InnoGames GmbH (“InnoGames”) bringing its ownership in the company up to 68%. The transaction also involves the establishment of a new holding company for MTG’s entire gaming business, also including Kongregate. This represents an important step towards creating a stronger gaming vertical that will be able to fully realize synergies, values and strategic opportunities going forward.
MTG has set out a clear strategy to drive value creation through organic growth and strategic M&A in its esports and gaming verticals. The acquisition of Hutch marks the third material investment in a gaming company by MTG and the first made through the new gaming holding company (“GamingCo”). The acquisition of Hutch is in line with MTG’s strategy to build up a portfolio of high-quality gaming companies and marks the beginning of a new journey with the ambition for further organic and acquisitive growth for MTG.
Founded in 2011, Hutch is a London-based free-to-play mobile games developer with 100+ team members, focused on the racing category in the highly attractive mid-core segment. Hutch has developed three category-leading mobile racing games – F1® Manager, Top Drives, and Rebel Racing – which have all reached considerable success despite being early in their growth journey and the titles have spearheaded the company’s achievement to generate more than 300 million downloads since inception in 2011. Additionally, Hutch holds a broader diversified game portfolio of 13 games and world-class IP licenses with some of the biggest names in the business, including Formula 1®.