STOCKHOLM, August 28, 2017 /PRNewswire/ --
Starbreeze AB has agreed with the owners of Indian art production company Dhruva Interactive to complete the acquisition of 90.5% of the shares in Dhruva Interactive for 8.5 MUSD.
The acquisition was announced 16 December 2016 with terms stipulating a purchase price consisting of 7.0 MUSD in cash and 1.5 MUSD in newly issued Starbreeze B-shares. Due to the complex regulatory environment in India, the transaction has taken more time than expected to complete. To facilitate regulatory technical limitations, the transaction was restructured to ensure that the effective purchase price remains the same. While the total purchase price of 8.5 MSUD will be in cash, a part of the seller group will acquire newly issued Starbreeze B shares of 1.5 MUSD (in compliance with the Indian regulations). The new shares will be issued by the board utilizing its authorization from the AGM, at market value (10 days trading average). The new share issue will represent approximately 0.4% of the capital and 0.1% of the votes, both on a fully diluted basis.
The deal also contains an earn-out agreement of maximum 0.5 MUSD over the next five years, compared to previously communicated 0.8 MUSD over the next four years.
Dhruva Interactive's ongoing outsourcing business will have a limited but positive impact on Starbreeze revenue and profit from day one. In the financial year ending March 2017 Dhruva Interactive's revenues amounted to 6.1 MUSD, a year on year growth of 32.6%.
Dhruva Interactive is a highly reputed and best-of-breed art production house, with whom Starbreeze has a long-standing relationship. Founded in 1997, Dhruva is India's leading game developer with over 320 employees, providing art production services to the global games industry. Dhruva has three state-of-the-art studios in India.
The original announcement regarding the acquisition can be found here: https://www.starbreeze.com/2016/12/starbreeze-acquires-indian-art-production-company-dhruva-interactive-for-8-5-musd/
For more information, please contact:
Ann Charlotte Svensson
Head of Investor Relations and Corporate Communications
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SOURCE Starbreeze AB