Swedish gaming company acquires Sunderland development studio in multi-million pound deal
A Swedish gaming company has announced that it has completed its acquisition of a Sunderland development studio in a multi-million pound deal.
Thunderful Group AB has acquired 100 per cent of Coatsink Software for an upfront consideration of £23m, as well as an earn-out component which could result in a total consideration of £65.5m.
Thunderful was advised on the deal by Swedish firm Setterwalls Advokatbyrå and Muckle LLP. The corporate team at Mincoffs Solicitors advised the shareholders at Coatsink on the transaction.
The acquisition is in line with Thunderful’s strategy to expand its games segment by adding platform partnerships and publishing deals.
Coatsink is currently working on 5 announced and unannounced in-house projects, including Jurassic World Aftermath and Transformers Battlegrounds, which will strengthen Thunderful’s existing development pipeline in 2021 and 2022.
Coatsink will remain an independent development studio and will be reported as part of Thunderful Games.
Thunderful Group’s CEO, Brjann Sigurgeirsson, commented: “We have established a good relationship with the founders and key personnel of Coatsink and believe that their strong work ethics and corporate culture will be a very valuable strong complement to Thunderful’s existing businesses."
Adam Rayner, corporate partner at Muckle LLP, said: “Although it’s just a first step, this is a good example of how we intend to leverage the group’s powerful cash flow going forward.
“This transaction is a fantastic deal for all businesses involved, and for the region.
“The North East tech sector has a world class reputation and we are delighted to have played our part in delivering this deal which stands to further the growth targets of both businesses and bring further investment to the region.
“Muckle works with international lawyers more than many would expect a North East law firm to.
“Setterwalls Advokatbyrå AB have been fantastic to work with and we were able to deliver the complex, multijurisdictional legal elements relatively smoothly.”