Event management and technology firm Millennial Esports has acquired an 82.5% stake in Lyon-based developer Eden Games for €9 million ($10.5 million).
Millennial Esports will pay €6.9 million and issue €2 million worth of common shares of the company to Eden Games stakeholders.
There is also the option to purchase the remaining shares in Eden Games after one year for €2.15 mllion. Performance earnouts to Eden founders could result in a further payout of €1.275 million.
The acquisition is expected to close by October 31st 2017.
Millennial Esports said the move is part of plans to significantly grow its revenue in the competitive mobile gaming space.
The deal is the fourth Europe-based deal Millennial Esports has completed or announced in 2017. Investments include eSports content and event outfit O’Gaming, Twitch research group Steam Hatchet, and motorsport and gaming group IDEAS+CARS.
The company also has other operations in North America.
"Millennial Esports has made the acquisition of Eden Games to expand its offering in Motorsport gaming quickly" said Millennial Esports CEO Alex Igelman.
"Eden Games has an almost unrivalled reputation as an independent racing game developer with the huge critical and commercial success of both Test Drive Unlimited and V-Rally. Their successful recent move to mobile games with their first title Gear.Club brought them to our attention.
“This acquisition is just the first step in our investment in the platform. The portfolio of games built on their technology platforms will expand very quickly now. That will allow Millennial Esports to take part in the significant growth in Mobile Esports gaming revenue globally."
Following the release of Gear.Club on mobile devices, Eden Games recently signed a publishing deal with Microids to bring the racing game to the Nintendo Switch.