Team17, a UK-based independent publisher, has acquired The Label, an American indie publisher.
The deal comprises an upfront payment of $24 million, with additional earnouts of up to $16 million paid over the next three years.
“We are absolutely thrilled to be joining forces with The Label’s entrepreneurial team, who are true pioneers in the delivery of quality mobile subscription games and technology,” said Team17 CEO Michael Pattison. “We are excited to tap into their unrivalled market and gaming experience to further take advantage of this growing market.”
Joshua Babich, VP and general manager at The Label commented: “Joining the Team17 family opens up unprecedented doors for us all. While we’ve carved out a strong foothold in the mobile subscription space, this allows us to instantly expand our market reach in ways that just wouldn’t have been possible before. We are delighted to be part of a Group that puts games development and creativity first!”
Founded in 2014, The Label specializes in mobile games and is best known for publishing What the Golf? developed by Copenhagen-based indie developer Triband. The publisher also assisted Google and Apple launch their respective game subscription services.
Team17 said the purchase would not only strengthen its position in the mobile sector, but it will also “provide a mobile subscription arm” for its games line due to The Label’s prior experience of developing for Apple Arcade games.
The Label was established in 2014 and specializes in mobile games, most notably for launching What The Golf? game.
Team17, known for creating the Worms series and publishing titles such as The Escapists and Overcooked, said the acquisition will help it develop a “dynamic and fast-growing subscription business.”
Furthermore, the collaboration will aid Team17 in strengthening its ties with both Google Play and Apple Arcade.
Team17’s latest acquisition follows after the publisher acquired the rights of multiplayer shooter Hell Let Loose from Australia-based developer Black Matter in a deal worth $62 million.
Combining both deals, Team17 is committed to investing $102 million over three years with its two acquisitions.
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