TEAM17 AGREES $49M DEAL FOR EDUTAINMENT APP DEVELOPER
02 July 2021
Listed video game company Team17 has agreed a deal to acquire a developer of educational entertainment apps in a deal worth up to $49m (£35.6m).
The company has entered into an agreement to acquire the business and assets of StoryToys via the acquisition of its parent company TouchPress Inc.
StoryToys, based in Dublin, is a developer and publisher of educational entertainment (edutainment) apps for children.
It works with brands including The LEGO Group, Disney, Pixar, Penguin, Sesame Workshop, Dick Bruna, Warner Bros, Hasbro, and Nickelodeon
The acquisition is set to establish a new edutainment vertical for Team17, strengthening the enlarged group's position in the games entertainment business.
The initial consideration for the acquisition is $26.5m, with a further maximum $22.5m payable in cash on delivery of certain targets
Debbie Bestwick, chief executive at of Team17, said: "I am thrilled to be welcoming StoryToys into the Team17 family and believe our shared culture and values perfectly align. In StoryToys, we are acquiring a highly creative and successful team whose ability to both entertain and educate children is truly best in class.
"Their track record is without question but the depth of talent that exists within the business gives us an unrivalled position within a hugely exciting and high growth edutainment area.
"We look forward to working closely with the whole StoryToys team and are delighted to be able to not only support their ambitious growth prospects but to provide a strong and stable platform to accelerate their development. Team17 prides itself on its culture and on embracing ambitious management teams - today's announcement is an example of how we intend to make that a reality."
Emmet O'Neill, chief executive at StoryToys, added: "Team17 is the perfect home for StoryToys as we enter into this incredible new chapter. Our goal is to be the number one provider of edutainment content for young children. Collaborating with Team17 will make that a faster and more exciting journey.
"We believe in creating the best possible digital learning experiences for children. We look forward to the possibilities that are opened up by collaborating with what we believe to be the best partner to deliver our ambitions."
Team17 is advised by GCA Altium (nominated adviser) and Berenberg (broker).
Team17 is headquartered in Wakefield with a commercial office in Nottingham.