Stillfront snaps up Kixeye in deal worth up to $120m

Acquisition worth $90 million plus up to a potential further $30 million in earnouts

Date Type Companies involved Size
June 3rd, 2019 acquisition KIXEYE
Stillfront Group
Stillfront snaps up Kixeye in deal worth up to $120m

The Stillfront Group has acquired strategy games developer Kixeye in a deal worth up to $120 million.

Stillfront has bought 100 per cent of the company for $90 million. The deal could be worth as much as $30 million more through earnouts based on the company’s performance for the rest of the financial year. Stillfront has obtained a bridge loan facility from Swedbank to finance the acquisition.

The purchase is expected to be completed by July 1st 2019.

Strategy specialists

Stillfront said the deal for Kixeye will strengthen its foothold in the free-to-play strategy games market.

Kixeye currently has four live games in its portfolio, which include Battle Pirates, War Commander, Vega Conflict and War Commander: Rogue Assault. Assets related to the development of MMO Kingdom Maker will be divested to Global Worldwide.

Unaudited net revenue for Q1 2019 came in at SEK 128 million ($13.5m), while EBITDA hit 65 million ($6.9m). These earnings represent a 31 per cent and 33 per cent increase on Stillfront’s net revenue and EBITDA respectively.

Lifetime sales for the company stand at around $850 million.

“Kixeye fits perfectly into Stillfront’s growth strategy by broadening our portfolio of studios and games with characteristics that drive long-term gamer relations,” said Stillfront CEO Jörgen Larsson.

“Kixeye’s games portfolio of four strong IP's and a well-known brand is a very good contribution to our existing game portfolio and increases the potential for synergies within the Group.

“Kixeye are pioneers in free-to-play gaming and has a very strong track record in developing blockbuster IP's. It is with pleasure I today welcome Clayton Stark, head of studio and the whole team to Stillfront.”

Stillfront plans to pay back this deal and further strengthen its financial position by raising new equity through a directed issue and/or a rights issue, and through raising new debt. The planned financing from this new equity is expected to be in the area of SEK 500 million ($52.3m).

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Craig Chapple is a freelance analyst, consultant and writer with specialist knowledge of the games industry. He has previously served as Senior Editor at, as well as holding roles at Sensor Tower, Nintendo and Develop.