Stillfront divests OFM Studios and cuts $26.5m Gameberry settlement

• Gameberry made a one-time upfront payment of $26.5m to settle obligations that would otherwise run until 2030.
• Stillfront divested OFM Studios to its founder through a management buyout.
• Stillfront said the moves are part of its ongoing strategic review and focus on key franchises.

Stillfront Group has divested Online Football Manager developer OFM Studios to the company's founder through a management buyout worth €2.1m ($2.4m).

The publisher picked up a 51% stake in the German sports game developer back in 2017 in an all-cash deal worth $735,000 (€639,000). The management buyout has already been completed as of May.

Elsewhere, Stillfront has also closed an agreement with Gameberry Labs for an early conclusion to Gameberry’s remaining payment obligations under an existing settlement agreement related to Ludo Games and ancillary titles.

Under the agreement, which would otherwise have continued until 2030, Moonfrog and Gameberry have agreed to resolve all current and future payment obligations through a one-time upfront cash payment of $26.5m from Gameberry to Moonfrog.

Portfolio simplification

Stillfront said the proceeds from the transactions will support the company’s continued deleveraging efforts.

The combined impact of the upfront settlement and the divestment is expected to reduce net revenue in “Other games” by approximately SEK 110m ($11.7m) over the next 12 months. 

Overall, the moves have brought in around $28.6m.

“These transactions, executed as a part of the ongoing strategic review, support our ambition to simplify our business and improve the quality of our revenue streams by concentrating on our key franchises," said Stillfront Group president and CEO Alexis Bonte. 

“I would also like to express my appreciation to the OFM team for the journey we have taken together."