Through the agreement, Flexion has the ability to acquire 40 per cent of Liteup through a directed share issue at a valuation of $2.5 million. Initially, Flexion will acquire 20 per cent of the firm for $500,000 via a directed share issue.
By 2025, Flexion will have the right to acquire the whole company from the founders for a "multiple of gross profit".
Based in Hamburg, Liteup Media allows influencers to monetise their online channels through the promotion of mobile games to their audience. The app-based service is currently in soft launch on Google Play and is expected to be released fully on iOS and Android later this year.
At the time of writing, Liteup is only partnering with TikTok creators that have either a North American or European majority audience.
Flexion has stated that since the changes in Apple’s IDFA last year, influencer marketing has become increasingly attractive to companies as a way to boost revenue for games. The acquisition serves as a way for the firm to expand its services offered to game developers and a way to tap into the influencer marketing space.
"There is no clear market leader in the fast-growing and fragmented influencer market which makes it ripe for disruption and consolidation," said Flexion CEO Jens Lauritzson.
"We are impressed with the Liteup Media team and their vision for influencer marketing. As with any early stage start up, there is a lot of hard work ahead. Flexion will add value by sharing experience, deal opportunities and developer relationships. We have already seen positive results with influencer marketing as an effective way to attract paying players to the alternative app stores we work with.
"Influencer marketing is a natural part of a vibrant and competitive market. This investment will give us hands-on experience, relationships and instant access to a new vertical which will become an important extension to our distribution service."
In other acquisition news, last week Nexters acquired three mobile games studios to increase its midcore offerings. The firm acquired Cubic Games, RJ Games, and Royal Ark for approximately $100 million.