MTG is acquiring 100 per cent of US games publisher and developer Kongregate from current owner GameStop Corp. for an Enterprise Value of $55 million (€49.3m). The transaction is subject to regulatory approval and completion of certain other closing conditions.
San Francisco based Kongregate was founded in 2006 and has 80 employees. Kongregate started as a browser based web gaming platform and has since expanded into publishing for both mobile and Steam games, and now into first party game development following the acquisition of San Diego based games studio Ultrabit.
The investment follows MTG’s recent acquisition of 51 per cent of Hamburg based online games developer InnoGames in 2016 and 2017, and gives MTG a clear foothold in both the European and US markets.
Jørgen Madsen Lindemann, MTG President and CEO: “This investment is in line with our strategy to invest in relevant, complementary and scalable digital content and communities. Online gaming is one of our three digital entertainment verticals, and we are establishing a presence in a gaming industry expected to be worth some 130 billion in 2020, of which mobile gaming is the fastest growing segment. Almost a third of the time people spend on mobile devices each day is spent gaming. We look forward to welcoming the high quality, hugely talented and well proven Kongregate team to MTG.”