West Yorkshire game developer acquires US based subscription gaming specialist for £18m
Team17, a global games entertainment label and developer of independent video games announced the acquisition of The Label, a USA based indie publisher specialising in mobile subscription games content for an initial consideration of $24m (£17.76m).
This comes with additional earn out consideration of up to a maximum of $16m (£11.84m) over the next three years. The total consideration of up to $40m (£29.6m) will be paid through a combination of cash and shares, which are subject to a 12 month lock-in period.
Established in 2014 by a team of mobile game developers, The Label accelerates the growth of emerging indie games studios by providing the funding, marketing, and design expertise to form “enduring relationships” with subscription platforms.
Subscriptions are fast becoming the go-to revenue stream for top mobile games developers. Whilst the market was previously dominated by free-to-play apps, studios increasingly view the subscription model as a “vital means for securing consistent revenues”.
Resultantly, internationally operating companies such as Apple,with which The Label already has a long-standing commercial relationship, Google, and Netflix are beginning to build out their services in order to break into the burgeoning market of subscription gaming.
Michael Pattison, CEO of Team17 Games Label, commented: “We are absolutely thrilled to be joining forces with The Label’s entrepreneurial team, who are true pioneers in the delivery of quality mobile subscription games and technology. We are excited to tap into their unrivalled market and gaming experience to further take advantage of this growing market.
“The Label is a fantastic addition to the Team17 family, creating an indie game powerhouse across PC, console and mobile platforms. We look forward to helping them build on their impressive track record of success, further enabling them to scale even greater heights in support of our ambitious growth aspirations. “
Joshua Babich, General Manager and Vice President, commented: “It’s an honour to join the world’s leading independent games publisher. Team17 has been a pillar of excellence for over three decades for gamers and creators, bringing some of the most imaginative and unique titles to life.
“With their support the sky’s the limit and our partners can feel confident our combined leverage will accelerate success for all.”
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