Sweden’s Modern Times Group (MTG) AB has agreed to buy free-to-play mobile racing games firm Hutch Games — which has studios in Dundee — for up to $375 million.
MTG will pay $275 million up front for Hutch, whose games include Top Drives, F1 Manager and Rebel Racing, and expects to pay another $100 million in earn-out payments based on Hutch’s financial performance in the 2021-2024 period.
MTG said Hutch generated $56.3 million in revenues and $14 million in EBITDA during the first nine months of 2020.
“Hutch has created an award-winning culture for their 100+ world-class team members, housed in their main studio in Shoreditch, London, with wider studios situated in Dundee and Canada,” said MTG.
In Dundee, Hutch Games operates from the Dundee and Angus College campus in Gardyne Road, where all staff are shareholders.
MTG CEO Maria Redin said: “Hutch is a true front-runner, responsible for some of the most successful titles in the fast-growing mobile racing category and spearheaded by an exceptionally strong and highly-experienced team.
“We are thrilled to welcome Hutch to MTG, both as a stellar company in its own right, and as the first investment made by our new gaming holding company.”
Hutch CEO and co-founder Shaun Rutland said: “We are excited to join MTG – in them, we have found a home that believes in our values, supports us in our mission and can help take our company and our games to the next level.
“When we founded Hutch, we wanted to create a world-class working environment and an empowered team dedicated to growing the racing genre on mobile.
“We made every member of the team a shareholder to recognize the value of their efforts, so this is an important day for all of us.”
Redin added: “Hutch has fantastic gaming IPs with strong growth potential – this acquisition strengthens our position in the midcore segment and diversifies our gaming portfolio, which already includes leading strategy and city builder games developer InnoGames and Kongregate, a leader in the idle gaming category.”