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505 Games Parent Company Acquires Starbreeze Assets

Digital Bros has reached a deal with Smilegate Holding for the acquisition of all Starbreeze AB’s assets. Digital Bros is the parent company of 505 Games and it’s expected that the aforementioned studio will be tasked with new projects from the catalog of Starbreeze.

Digital Bros buys all the assets held by Smilegate Holdings in Starbreeze AB for a total amount of Euro 19.2 million.

Starbreeze Studios AB’s finances where on a downhill, but the Swedish studio and publisher has developed notable games like Payday 2, Brothers: A tale of Two Sons and The Chronicles of Riddick: Escape from Butcher Bay.

Digital Bros. has released a press release in where they announce the definitive acquisition of the assets, the deal was closed at €36.7 million (£31.1m). Digital Bros will also own 28.01 percent of Starbreeze AB’s share capital and represent a 29,93 percent of the voting rights.

Smilegate Holdings is a South Korean video game developer and publisher, which develops, publishes and services mobile and PC online games. Digital Bros bought from the South Korean Company the following assets in Starbreeze AB, for an overall nominal value of approx. Euro 36.7million:

  • Convertible Bond of SEK 215 million (approx.Euro 20.4million) issued by Starbreeze AB with a strike price of SEK 2.25 per share.

  • Credit of US $15.9 million (approximately Euro 14.7million)included in Starbreeze’s reconstruction planthat will be paid within the framework of the Composition approved by the Stockholm District Court but no later than 5 years;

  • 3,601,083 STAR A shares and 6,018,948 STAR B shares, corresponding to 2.66% of StarbreezeAB’sshare capital and 3.71% of StarbreezeABvoting rights for approx. Euro 1.6millionat the current share prices. After the acquisition of Smilegate Holdings’ shares in Starbreeze AB and the potential conversion of the Convertible Bond, Digital Bros will own 28.01% of Starbreeze AB’s share capital and 29.93% of the voting rights.

Source: MCVUK

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Guillermo Ortega

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Guillermo Ortega

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