MTG buys Kongregate, an U.S.-based cross platform games publisher & developer, for $55M

MTG, Stockholm, Sweden-based media group, announced the acquisition of 100% of U.S. games publisher and developer Kongregate Inc. from current owner GameStop Corp. for an Enterprise Value of $55M.

The transaction is subject to regulatory approval and completion of certain other closing conditions.

Kongregate is based in San Francisco, was founded in 2006 and has 80 employees. Kongregate started as a browser based web gaming platform and has since expanded into publishing for both mobile and Steam games, and now into first party game development following the acquisition of San Diego based games studio Ultrabit.

The company grew its net sales (net of revenue share with developers) by 38% in 2016 to USD 35 million, with mobile revenue generated from in game purchasing and advertising growing by 74%. The company is expected to grow its revenues to at least USD 50 million in 2017, with an EBITDA margin of approximately 10%.

The investment follows MTG’s recent acquisition of 51% of Hamburg based online games developer InnoGames in 2016 and 2017, and gives MTG a clear foothold in both the European and US markets.