Singapore’s iCandy set to purchase 318 mobile games from Animoca at US$3.8M [Yahoo]

Singapore’s iCandy set to purchase 318 mobile games from Animoca at US$3.8M

The ASX-listed company will also pay up to A$3 million (US$2.28 million) in shares based on the performance of the games

ASX-listed mobile entertainment company iCandy has announced the acquisition of 318 mobile games from app developer Animoca, which is also listed on the ASX.

Animoca said that the sale of its portfolio to iCandy was due to the latter’s strategic position in Southeast Asia, which it said has a ‘lower-cost development footprint and access to a larger talent pool in design and innovation.”

iCandy will pay Animoca A$5 million (US$3.8 million) in the form of cash and stocks for the games; A$1 million (US$760,000) will be in cash while A$4 million (US$300,000) will be in iCandy ordinary shares.

In addition, up to A$3 million (US$2.28 million) will be paid to Animoca in iCandy ordinary shares based on the performance of the games over the next two years upon finalisation of the transaction.

Animoca will also get a share of the profits if a particular game nets over A$1 million (US$760,000) in profits per annum.

Once the transaction concludes, Animoca will continue to “publish, operate and maintain the game portfolio for a period of at least three months” until the iCandy team is ready to take over. iCandy will pay Animoca for the services rendered during the handover.

According to an official press release, a definitive agreement between the two parties is expected to be reached within 30 days, and the transaction is expected to conclude within 75 days.

The integration of gamers from Animoca’s portfolio — 325 million in total — will give iCandy a combined network of 348 million gamers.

Headquartered in Melbourne, Kuala Lumpur, and Singapore, iCandy focusses on publishing games for mobile devices. Some of its most successful titles include Crab War, Mobfish Hunters, and Caveboy’s Escape.

In April this year, it completed the acquisition of Singapore-based mobile games studio Inzen Studio for S$6 million (US$4.4 million) in stocks and cash.