Hutch Games is backed by investors including Backed VC, Index Ventures, Initial Capital, and angel investor Chris Lee.

Modern Times Group, a Swedish company active in esports and gaming entertainment, announced the acquisition of London based mobile games developer Hutch Games for $ 375 million. Of this amount, $ 275 million is payable upfront and the rest will come from earnout payments. Top Hutch games such as Rebel Racing, F1 Manager, and Top Drives will now come under MTG’s umbrella. (gamesindustry.biz)

GamingCo, a holding company formed by MTG with German game developer InnoGames, will acquire Hutch Games. GamingCo will hold all the shares owned by MTG in InnoGames, Kongregate, and now, Hutch Games.

“The acquisition of Hutch is in line with MTG’s strategy to build up a portfolio of high-quality gaming companies and marks the beginning of a new journey with the ambition for further organic and acquisitive growth for MTG,” the company said in a statement.

Hutch Games

Founded in 2011, Hutch is a developer of free-to-play mobile games. It principally focuses on the racing category and in the mid-core segment.

Hutch earned $ 56.3 million of revenue, $ 14 million in EBITDA, and $ 13.3 million of EBIT in the first nine months of 2020.

It has achieved a year-on-year sales growth of 158% and improving margins.

Investors in Hutch were venture capital funds BACKED VC, Index Ventures and Initial Capital and angel investor Chris Lee. They are all selling their stakes in this transaction.

Why MTG bought Hutch

MTG sees considerable potential in the three top titles owned by Hutch mentioned above. Hutch also has an attractive lineup of new games planned for launch through 2021 and 2022.

Besides, Hutch’s games are an attractive addition to MTG’s existing gaming portfolio.

“The combination of MTG’s current games portfolio in the mid-core segment, with Hutch’s games in the racing genre, enables the combined organization to reach a greater audience,” says MTG. “The combined company will enable MTG to fully capture the synergies from shared expertise and studio network effects.”

Maria Redin, CEO and Group President of MTG, said the acquisition strengthened the company’s position in the mid-core segment and diversified its portfolio.

That includes strategy and city builder games developer InnoGames, and Kongregate, a leader in the idle gaming category.

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Image Credit: Hutch Games – Rebel Racing