Fantasma Games is to acquire online casino games producer Wiener Games, which becomes the group’s maiden purchase and comes within six months of the studio going public.
The deal is worth €700,000, which is made up of €500,000 in cash and €200,000 in newly issued shares, and comes after the Stockholm-based group stipulated that acquisitions were a key part of its IPO strategy.
The deal also includes an earn-out arrangement based on future results, which can amount to a maximum of €1.8m and be paid either through newly issued shares or cash, as decided by the buyer.
Fantasma says that the acquisition will enable the company to make exclusive games for a select group of operators without any added resource load on the Swedish part of the business.
It is also expected that Wiener Games will contribute positively to results, and that the transaction will close in October 2021, and is subject to customary closing conditions.
“We have begun to suffer from the pleasant problem of not being able to fully meet customer demand for new games,” commented Jacob Sachs, CEO of Fantasma Games.
“Wiener Games, for its part, have a strong production apparatus, but a limited distribution capacity. The acquisition solves both our problems while adding a new revenue stream for us by way of a completely new business model.”
Wiener Games was founded in 2014 and is headquartered in Sofia, Bulgaria,and has had an average turnover of approximately €350,000 since 2018.
The entity has 19 employees and operates as an independent producer of games for studios and operators such as Relax Gaming, Leo Vegas, Microgaming, and Skywind.
“We are a profitable production company that makes games for some of the world’s largest casinos,” commented Konstantin Dinev, Wiener Games’ CEO.
“Through Fantasma Games, which has made a name for itself in the industry in a short time, we will further broaden our network of contacts and also be able to create and distribute our own games.”