Nacon Group is making its sixteenth acquisition in four years, acquiring Daedalic Entertainment for €32 million plus a performance-based earn-out through 2026.
Acquisitions are an important growth driver for players in the games industry and Nacon uses them regularly. The group has already made 15 acquisitions in four years, including Cyanide and Kylotonn in 2018, Spider in 2019, and Big Ant Studios, Creature Studios and Ishtar Games last year, and now the French publisher intends to add developer and publisher Daedalic Entertainment to its list.
Nacon intends to acquire 100% of the capital and voting rights of Daedalic Entertainment for a net cash consideration of €32 million, plus an additional amount payable in cash depending on the studio’s performance until 2026 – which could bring the total deal to €53 million. In a press release, the duo specifies that Carsten Fichtelmann (Daedalic’s founder and CEO) and Stephan Harms (its COO) will continue to run the company “with great autonomy”.
Beyond the financial amounts, it is easy to understand the strategic interest of the operation: besides the fact that the two companies already work together (notably around the publishing of The Lord of the Rings: Gollum, expected this year) and that the acquisition will allow “synergies between the two publishing houses with complementary profiles”, Nacon will be able to count on Daedalic’s catalog of several dozen games and licenses, while Daedalic will benefit from the publisher’s support, notably in terms of sales, publishing and marketing.