tinyBuild Inc (LSE:TBLD) is to acquire Animal, a game developer the company has been working with on a multiplayer arena ‘shooter’ called Rawmen.
The Seattle-headquartered video game publisher, which floated in London earlier this year, will pay up to US$10.2mln to acquire its development collaborator over a three-year period – with around 30% of the total consideration being paid in cash and the remainder paid in tinyBuild shares.
“As a public company, we have an even more powerful platform from which we can deliver on our organic and M&A growth ambitions,” said chief executive Alex Nichiporchik.
“We are delighted to announce the acquisition of Animal, our fourth acquihire this year, as we continue to scale up our ambitions.
“Our experience of working with the studio over the last two years means we know they are going to be a great addition to the tinyBuild family.”
The company said that the deal, described as an ‘acquihire’, is expected to create shareholder value. By bringing Animal in-house, tinyBuild said it will add high visibility on-platform revenues that help reduce execution risk.
It is in line with tinyBuild’s stated strategy to elevate core game publishing franchises from third-party to either second or first-party assets.
Nichiporchik added: “Our goal is to expand our position as a leading global developer and publisher, focusing on IP ownership while creating long-term scalable franchises across multiple media formats.”
The tinyBuild chief executive said the company is presently looking at a number of other potential acquihires and larger scale acquisitions.
Rawmen is described as a light-hearted food-themed multiplayer shooter where up to eight players battle for ‘soupremacy’, using food as weapons. It is still under development but is due for distribution later this year on Playstation 5, Xbox Series X and S, and Steam.