Sweden-based Modern Times Group (MTG) has announced the acquisition of UK-based mobile racing game studio Hutch Games which is the developer of many popular racing titles including Rebel Racing, F1 Manager and Top Drives.
The total value of the acquisition is expected to be up to $375 million. MTG will pay $275 million upfront for the acquisition and set aside another $100 million for earn-out payments.
”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.” said Maria Redin, MTG CEO and Group President. ”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.”
”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.” said Shaun Rutland, Hutch CEO and Co-founder. ”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.”
London-based Hutch Games generated $56.3 million in revenue during the first three quarters of 2020, with a 153% year-over-year growth.
Meanwhile, MTG acquired 74% of ESL and 100% of DreamHack in 2015. It also acquired InnoGames and Kongregate for their highly popular mobile & web-based games.
However, the acquisition of Hutch is the first acquisition made by the company’s new holding company GamingCo formed with InnoGames to manage MTG’s entire gaming business including Kongregate.