Fragbite Group has signed an agreement today to acquire all outstanding shares of Lucky Kat for €7 million ($7.8 million).

This will be paid as a combination of €5 million ($5.6 million) in cash and €2 million ($2.2 million) through 3,860,755 newly issued shares in Fragbite.

There is also a consideration of an additional purchase of up to €11 million ($12.3 million), which may be paid based on Lucky Kat’s financial results in the next two years.

Between Q1 and Q3 2021, Lucky Kat generated €5.2 million ($5.8 million) in sales and €0.9 million ($1 million) in earnings before interest, taxes, depreciation, and amortisation (EBITDA). The forecast for the end of 2021 is around €7.5 million ($8.4 million) with an EBITDA of €2 million ($2.2 million).

The closing of the deal is set to take place before the end of 2021.

Working together

"I am very happy and proud to announce that today we have signed an agreement to acquire Lucky Kat B.V. I look forward to working more closely with its founders Herdjie and Hernan Zhou and all their employees," said Fragbite president and CEO Stefan Tengvall.

"The company has proven that they can produce games with data-driven decisions and is currently making its first game with ‘play-to-earn mechanics’. I believe that the rest of Fragbite Group will benefit from the company's know-how and knowledge and that this is an acquisition that will complement our group and create good synergies with our existing operations."

Headquarted in the Netherlands, Lucky Kat's casual and hypercasual mobile games have been downloaded more than 200 million times across the App Store and Google Play Store since the studio was established in 2015.

Lucky Kat co-founder and CEO, Herdjie Zhou, also commented, "We are proud and excited to join Fragbite group as we accelerate our growth into both mobile games and play-to-earn games. With the recent success of the NFT sales of Panzerdogs there are operational synergies with Fragbite’s knowledge and expertise in esports."

Last month, Waysun acquired a majority share in Boss Bunny Games to expand its publishing operations into the MENAT region.