Team17 Group PLC (LON:TM17), the indie computer games developer, is to acquire educational entertainment specialist StoryToys from TouchPress Inc.
The initial consideration is US$26.5mln, with a further maximum of US$22.5mln payable in cash on delivery of certain targets by the vendors within three years following completion of the deal.
The acquisition will be funded from Team17's existing cash reserves.
It's a great privilege to work with such awesome kids brands as The Very Hungry Caterpillar. We’re absolutely delighted that Hungry Caterpillar Play School has been nominated for a @Licensing_Intl Award 2021.
A huge thanks to our amazing partners @worldericcarle and @TJLgroup ???? pic.twitter.com/M0WuBb2wNG
— StoryToys (@StoryToys) June 30, 2021
Team17 said bringing StoryToys on board would broaden its existing skill-set and customer reach and would immediately boost earnings.
Ireland’s StoryToys generates revenues from its apps through subscription, in-app purchases, and paid apps.
“In StoryToys, we are acquiring a highly creative and successful team whose ability to both entertain and educate children is truly best in class,” said Debbie Bestwick, the chief executive officer of Team17.
"Their track record is without question but the depth of talent that exists within the business gives us an unrivalled position within a hugely exciting and high growth edutainment area,” she added.
Shares in Team17 were up 2.1% at 745p in early deals.
We’re really excited to share that StoryToys has been acquired by @Team17, a global games entertainment label, creative partner and developer of independent premium video games! https://t.co/cummxelqzQ
— StoryToys (@StoryToys) July 2, 2021