iCandy kicks off campaign to conquer Europe on the back of Flying Sheep. No, really.
iCandy has continued its M&A trail and now holds a major stake in a German based Flying Sheep Studios to develop a strong European presence.
Aussie game developer iCandy Interactive (ASX:ICI) has announced completion of a 60% acquisition of German gaming backend tech company Flying Sheep Studios for around $3 million (€2 million).
It’s been an extremely fast turnaround on the deal, which was only announced earlier this month, and iCandy says the cash subscription, cash consideration and options have been paid.
The company says consideration shares will be issued to the founders in 12 equal tranches over a period of three years, with the first today.
Founded in 2014, Flying Sheep Studios is led by a team of experienced software engineers and has a record of game development and gamification with more than 50 brands worldwide.
The company has delivered more than 200 games to clients including DreamWorks Animation and recorded more than €321,000 ($484k) in revenue in its fiscal year ending December 2021.
Flying Sheep Studios has developed a wide range of proprietary software to improve capabilities of HTML5 beyond traditional 2D technology.
With its inhouse developer tools, Flying Sheep Studios has progressed ahead to building games that provide fluid 3D graphics that rival native apps.
The acquisition is expected to facilitate iCandy’s venture into metaverse gaming by improving its gaming backend tools and capabilities.
iCandy will also add to its existing talent pool of more than 600 with the integration of Flying Sheep Studio’s experienced team of developers and software engineers.
The European video games segment is projected to be worth US$27.4 billion in 2022 with iCandy’s acquisition of Flying Sheep Studios getting it a foothold in the lucrative market.
At present, iCandy stands as the largest independent game developer in Australia, New Zealand, and Southeast Asia.
The company has been on an aggressive M&A strategy to build a global integrated Metaverse gaming platform, while capitalising on another emerging trend of NFT gaming.
In February iCandy completed the $44.5 million 100% acquisition of Malaysian-based Lemon Sky Studio, considered to be its crown jewel.
Lemon Sky has an existing portfolio of partnerships with big industry players including EA Entertainment, Microsoft Studios, Disney, Nickelodeon, Activision, and Blizzard Entertainment.
This article was developed in collaboration with iCandy Interactive, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.