Modern Times Group (MTG) has acquired Hutch, a developer and publisher of free-to-play mobile games focused on the racing genre in the midcore segment.
MTG says the acquisition enables strong growth opportunities within a new and highly attractive game category for MTG while also further diversifying the group’s games portfolio. The up-front consideration amounts to $275 million (on a cash and debt free basis) and earn-out payments at an expected value of $100 million in aggregate.
Hutch is made up by a staff of 100+ team members, of whom 70 are developers. The company’s current top three titles are F1 Manager, Top Drives, and Rebel Racing.
Maria Redin, CEO and Group President of MTG, commented: “Hutch is a true front-runner, responsible for some of the most successful titles in the fast-growing mobile racing category and spearheaded by an exceptionally strong and highly-experienced team. We are thrilled to welcome Hutch to MTG, both as a stellar company in its own right, and as the first investment made by our new gaming holding company.
“Hutch has fantastic gaming IPs with strong growth potential – this acquisition strengthens our position in the midcore segment and diversifies our gaming portfolio, which already includes leading strategy and city builder games developer InnoGames and Kongregate, a leader in the idle gaming category,” she added.
Shaun Rutland, CEO and Co-founder of Hutch, commented: “We are excited to join MTG – in them, we have found a home that believes in our values, supports us in our mission and can help take our company and our games to the next level. When we founded Hutch, we wanted to create a world-class working environment and an empowered team dedicated to growing the racing genre on mobile. We made every member of the team a shareholder to recognise the value of their efforts, so this is an important day for all of us.”