Responding to increased demand for quality products in the iGaming space, Stockholm-based Fantasma Games AB has decided to acquire an additional game development arm. The company has negotiated a deal to acquire Wiener Games OOD, a first for Fantasma, which has been producing games through its own in-house production unit.
Wiener Games, an IGaming Minnow with Big Potential
As a result, Fantasma Games will be able to add more development capacity to its offer and increase its revenue stream as Wiener Games’ products are already available with various clients. Wiener Games is a small-timer by iGaming development standards, with the company generating approximately $412,000 (€300,000) in annual revenue. Yet, Wiener Games, originally founded in 2014, has been growing year-over-year ever since. The company is based in Sofia, Bulgaria, and currently has a staff of 19 people. Wiener Games has already provided content for numerous brands, including Leo Vegas, Microgaming, Relax Gaming, and others.
The deal is worth $825,000 (€700,000), of which $235,000 (€200,000) is allocated in newly-issued shares, and the remainder of the sum is to be paid in cash. Depending on EBIT performance between 2021 and 2024, Fantasma Games may pay out a maximum of $2.12 million (€1.8 million) to the seller, either in money or in new shares. The current deal is set to close in October 2021 as per customary closing conditions.
Commenting on the partnership, Fantasma Games CEO Jacob Sachs said that the company had reached a moment in its development where in-house development has reached capacity, and expansion is necessary. “The acquisition solves both our problems while adding a new revenue stream for us by way of a completely new business model,” Sachs explained.
Meanwhile, Konstantin Dinev, CEO at Wiener Games, is confident that this deal with Fantasma Games will allow the team at Wiener Games to quickly expand their network of contacts and distribute more games.