A further payment of up to $16.0 million across the next three years is also on the table, based on performance targets. The total consideration of $40 million will be paid via a combination of cash and shares, subject to a 12-month lock-in period.
Founded in 2014, The Label provides funding, marketing, and design expertise to accelerate the growth of indie mobile game studios, in addition to establishing long-standing relationships with subscription services. The pulisher is best known for What the Golf?, developed by Copenhagen-based indie developer Triband.
The Label is a partner of both Apple and Google for their respective games subscription services, Apple Arcade and Google Play Pass, as well as Netflix.
Following the acquisition, The Label will join Team17’s existing games label and will work collectively with its partners. Furthermore, the acquisition will expand Team17's presence in the growing mobile subscription sector.
Stretching into subscriptions
"We are absolutely thrilled to be joining forces with The Label's entrepreneurial team, who are true pioneers in the delivery of quality mobile subscription games and technology," said Team17 CEO Michael Pattison.
"We are excited to tap into their unrivalled market and gaming experience to further take advantage of this growing market."
The Label vice president and general manager Joshua Babich added: "Joining the Team17 family opens up unprecedented doors for us all. While we've carved out a strong foothold in the mobile subscription space, this allows us to instantly expand our market reach in ways that just wouldn't have been possible before. We are delighted to be part of a Group that puts games development and creativity first!"
Towards the end of 2021, Stillfront Group announced that it had acquired Iron Throne: The Firstborn from Netmarble, which it will rename Rise of Firstborn.