Team17 has completed an £80mln fundraise to pay for the acquisition of German games developer astragon Entertainment, as the AIM-listed group’s expansion continues.
Announced last night, the placing will take the market value of Team17 beyond £1bn again with chief executive Debbie Eastwick subscribing for around £1mln worth on shares in an issue priced around yesterday’s market close of 714p.
Dusseldorf-based astragon specialises in simulation games based on real-life activities such as firefighting, bus driving and policing and is costing Team17 €100mln (£83mln) with cash upfront of €75mln.
Team17 added that astragon has posted annual revenue growth of 18% since 2017 and will take it into a new and complementary simulation game category.
The German group also has a large back catalogue of evergreen owned franchises and IP with more than 20 games developed over the last 10 years and a pipeline of products in development.
astragon generated €26mln of revenue and underlying profits of €5.7 mln in 2020.
Eastwick said: “ We believe we are joining forces with one of the leading experts in the simulation games space.
"They have decades of game creation and publishing experience, have built an outstanding and highly devoted community and have developed an outstanding portfolio of owned IP across this genre."
Shares rose 3.6% to 740p.