MTG, owner of eSports companies ESL and Dreamhack, today announced that it has invested in German games company Innogames, a deal that sees it poised to open up another avenue into the online gaming for the Swedish entertainment group.
MTG is snatching up a 35 percent stake in InnoGames, a transaction that will have cost the company €91 million, based on InnoGames valuation of €260 million. As part of the deal, there's the option for MTG to acquire a further 16 percent of the company at the same valuation an option which, if exercised would make them InnoGames' majority shareholder.
InnoGames is a developer-publisher that is expected to post revenues of €125 million in 2016 and seems to be growing solidly, so is a good target for MTG's first foray into the mobile and browser games sector. InnoGames employ over 400 staff, has four studios in its native Germany, and has 150 million players across its collection of mobile and browser games.
In an emailed statement, Jørgen Madsen Lindemann, MTG's President and CEO said: “We have been involved in the gaming space for a while now, and look for companies with clear track records in IP development that have translated into high revenue growth and a healthy profitability profile over time. This we have found with InnoGames. We are focused on digital verticals with global potential, and gaming is a truly global industry. InnoGames is the right partner due to its established position in the industry, fast growing mobile user base, and exciting pipeline of new releases. We are now present in three complementary digital video storytelling verticals, and we will invest to expand this presence further.”
The transaction is subject to German and Austrian merger approvals.