Astragon Entertainment: Team17 buys publisher for €100 million
There has been another multi-million deal in the games industry. Listed British publisher Team17 Group has acquired German games developer Astragon Entertainment GmbH for a total purchase price of 100 million euros. Astragon made the announcement in a press release [page in English] on Thursday.
The company said the acquisition of Astragon is in line with the company's growth strategy and also brings a number of benefits.
Astragon can now build on its existing foundations to achieve its set goal, it added. The developer, which specializes in simulation games such as bus simulators, farming simulators, construction simulators and police simulators, aims to become a global leader in this genre, he said.
For Astragon Entertainment's co-CEOs Julia Pfiffer and Tim Schmitz, Team17 is the ideal home because both partners share the same visions, he said:
„Our goal is to become the number one in the field of ‚work‘ simulation games.“ Working with Team17 will enable and help Astragon to further develop and focus on this strategy. We look forward to the opportunities that working with what we believe to be a great partner will open up to realize our ambitions.
A worthwhile investment for Team17
Astragon has proven to be a profitable company. Between 2017 and 2020, the developer reported 45% earnings growth (EBITDA) and 18% revenue growth, according to the press release.
In fiscal 2020, Astragon reported €26 million in revenue and €5.7 million in EBITDA. As of December 31, 2020, Astragon had audited net assets of approximately €13.8 million.
The acquisition accelerates Team17's entry into the simulation game genre, it said. The group believed that demand for this type of non-violent and cooperative entertainment games had increased as a result of the COVID-19 pandemic.
Team17 on course for expansion
According to Team17 CEO Debbie Bestwick, the company is aiming to appeal to the widest possible audience with its products. The Wakefield, England-based publisher has already made a name for itself developing indie video games and educational apps for children.
Just last week, Team17 secured exclusive rights to developer Black Matter Pty Ltd's popular tactical shooter Hell Let Loose (HLL) for GBP 31 million (EUR 37.14 million). In addition, Team17 invested USD 100 million (EUR 87.23 million) in the acquisition of US indie publisher The Label.
With the recent acquisitions, Team17 has been able to significantly expand its broad cross-section of players, spanning multiple genres and age groups, Bestwick said.
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