AA publisher NACON has announced that it has acquired developer/publisher Daedalic Entertainment for 53 million Euros. NACON details that this acquisition represents the biggest external growth yet for the company and it is in line with its development strategy in the video game industry. NACON and Daedalic Entertainment are currently working together on the upcoming The Lord of the Rings: Gollum which is currently one of the most anticipated titles of 2022.
NACON has shared additional details about the acquisition as well. The integration into NACON will not change much at the top hierarchy of Daedalic as Carsten Fichtelmann, Founder and CEO, and Stephan Harms, COO will continue to run the company with a high degree of autonomy in development and publishing. NACON will also support future projects by combining forces through its sales, publishing, and marketing teams. Daedalic Entertainment is currently one of Germany’s biggest and olden indie video game companies.
The terms and conditions of the transaction are detailed as:
The first step of the deal was the signature of a Letter of Intent with exclusivity of negotiation.
The acquisition of 100% of the share capital and voting rights of Daedalic Entertainment will have an overall maximum price of 53M€ on the basis of:
- a net price of 32M€ in cash upon signature;
- an earn-out payable for 100% in cash, based on performance until 2026
The final competition of the transaction is expected to take place in 2022, subject to usual conditions precedent. The Board of Directors of NACON approved the completion of this transaction and will reconvene at the time of the final closing of the transaction.
Alain Falc, Chairman and CEO of NACON said:
We knew, through our current collaboration on Gollum, that NACON and Daedalic share the same values and the same objectives to deliver unique experiences to gamers. Therefore, it seemed logical to go further together and we’re extremely happy of this acquisition. It represents a significant step in Nacon’s strategy.
Carsten Fichtelmann founder and CEO, Daedalic Entertainment also commented:
After eventful years in which we always came out on top, I feel proud looking back at the past 15 years and the development of the company. Daedalic Entertainment has established itself as a publisher and developer of exceptional games across various genres and on all relevant platforms and has cemented that position globally. Together with Nacon, we are now taking the next step to further develop our catalog of games created by our own team as well as many incredible indie studios. We are looking back at a trusting and cooperative collaboration on The Lord of the Rings™: Gollum™ and forward to an even brighter future together.
The two companies first collaborated in 2019 when Daedalic and NACON announced that both companies will be working together on the upcoming The Lords of the Rings: Gollum. After this title, both companies are aiming for more new experiences in the future as well. This strategic acquisition will help NACON strengthen its position as a leader in the AA games. Daedalic is the 16th studio acquired by NACON in less than 4 years.
What do you think of NACON acquiring Daedalic Entertainment? Let us know in the comments section below.
