Modern Times Group has entered a deal to acquire 100% of mobile games publisher Kongregate from current owner GameStop for $55 million.

The acquisition is still subject to regulatory approval and the completion of other closing conditions, and therefore won't close for a few months.

Kongregate is currently on track to generate $50 million in revenues for 2017, with a profit margin of around 10%. The developer is also shifting into developing its own games, and will work with MTG to acquire developers to work under the Kongregate brand.

Integrity, collaboration, and fun

"Our vision has always been to nurture the development of indie game developers and the consumer gaming community. Our values are all about integrity, collaboration, and most of all, fun," said Emily Greer, co-Founder and CEO of Kongregate.

"MTG is not only a great partner as we continue to step up our expansion into new gaming platforms and channels, but the right partner because they share our values and commitment to empowering indie development teams to create unique and innovative gaming experiences for consumers across any and all game platforms."

This is the second mobile developer acquisition by MTG in 2017. In May 2017 it acquired a 51% stake in Hamburg-based developer InnoGames in a deal worth over €130 million.

Kongregate recently surpassed 100 million downloads across its mobile portfolio four years after it started publishing on the platform. It currently has over 15 million MAUs across all its games.