UK-based game publisher Team17 has announced that it has acquired German game developer and publisher Astragon Entertainment for $114.6 million (€100 million).
According to the terms of the transaction, an initial consideration of $86 million (€75 million) will be paid. Furthermore, depending on performance targets for the financial years ending in December 2021 and 2022, an additional $26.8 million (€25 million) in cash may be paid out.
“Our goal is to become the number one brand in the field of ‘working’ simulation games,” said Astragon CEOs Julia Pfiffer and Tim Schmitz. “Collaborating with Team17 will enable and help Astragon to evolve and focus on this strategy. We look forward to the possibilities that are opened up by working with what we believe to be a great partner to deliver our ambitions.”
It appears that the buyout is intended to get Team17 and its partners into the simulation software business. Although Team17 has become renowned for developing and publishing games such as Overcooked 2 and Hell Let Loose, Astragon has mostly stayed under the radar.
Instead, the developer focused on producing “complex simulation software” like Bus Simulator, Construction Simulator, Firefighting Simulator, Farming Simulator, Euro Truck Simulator, etc.
Debbie Bestwick, CEO of Team17, discussed how the acquisition might help to expand Team17’s operations. “With the addition of StoryToys and the expansion of our Games Label, which includes the recently acquired USA based ‘The Label’ and now Astragon, we have significantly expanded Team17’s appeal to the widest ever cross-section of gamers, spanning multiple genres and age groups,” said Bestwick in a statement.
It appears that Team17 plans to expand its game portfolio to give consumers non-violent and cooperative entertainment titles through the acquisition.
Additionally, Team17 intends to integrate Astragon into its Team 17 brand, with the company retaining its own identity. It will operate as an independent business within Team17 while also collaborating with other developers.
Team17 has made a slew of purchases this year, including the acquisition of Astragon. Last week, it bought the game Hell Let Loose from Australian indie developer Black Matter and US independent game publisher The Label.
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