Daedalic Entertainment, a German and American company that creates quality games for PC and consoles, has been acquired by NACON AG Group. The acquisition is reportedly worth €53 million ($58 million).
NACON, an AA publisher, has announced the acquisition of Daedalic Entertainment, a developer and publisher, for 53 million Euros. This purchase, according to NACON, marks the company’s largest external expansion to date and is in keeping with its video game industry development plan. The Lord of the Rings: Gollum, which is now one of the most anticipated games of 2022, is being developed by NACON and Daedalic Entertainment.
Additional information on the purchase has also been released by NACON. The merger into NACON will have little impact on Daedalic’s senior management, as Carsten Fichtelmann, CEO, and Stephan Harms, COO, will continue to operate the firm with a high degree of autonomy in development and publication. NACON will also collaborate on future projects by pooling its sales, publishing, and marketing resources. Daedalic Entertainment is one of Germany’s oldest and largest independent video game studios.
The following are the transaction’s terms and conditions:
The signing of a Letter of Intent with negotiating exclusivity was the first stage in the process.
The purchase of 100 percent of Daedalic Entertainment’s share capital and voting rights will cost a maximum of 53 million euros, based on the following factors:
- a net price of 32 million euros payable in cash upon signing;
- an earn-out of 100% in cash, payable through 2026, depending on performance
The transaction’s final competition is planned to take place in 2022, subject to the necessary pre-requisites. The NACON Board of Directors authorized the transaction’s completion and will reassemble at the time of the transaction’s formal close.
NACON’s Chairman and CEO, Alain Falc, stated:
We know from our present Gollum partnership that NACON and Daedalic have the same values and goals for providing unique gaming experiences. As a result, it appeared sensible to continue working together, and we’re really pleased with this purchase. It is a huge step forward in Nacon’s plan.
Daedalic Entertainment’s founder and CEO, Carsten Fichtelmann, added:
Looking back on the last 15 years and the company’s evolution, I feel pleased after turbulent years in which we always came out on top. Daedalic Entertainment has secured its place as a publisher and producer of great games in a variety of genres and on all key platforms throughout the world. We’re now taking the next step with Nacon to expand our portfolio of games made by our own team as well as a slew of fantastic independent firms. We reflect back on a collaborative and trusted relationship on The Lord of the RingsTM: GollumTM and look forward to an even better future together.
The two firms initially partnered in 2019 when Daedalic and NACON announced that they will be working on The Lords of the Rings: Gollum together. Following this title, both firms want to pursue new experiences in the future. NACON’s position as a leader in the AA games will be strengthened as a result of this strategic purchase. In less than four years, Daedalic has become NACON’s 16th studio acquisition.
What are your thoughts on NACON’s purchase of Daedalic Entertainment? Please share your thoughts in the comments box below.