This acquisition represents, to date, the largest external growth operation carried out by Nacon and is part of its development strategy in the video game industry.
Already partners in the publishing of one of the most anticipated games of 2022, The Lord of the Rings: Gollum, the two companies have decided to consolidate their collaboration. This transaction will allow Nacon to acquire several key intellectual properties and benefit from Daedalic Entertainment’s remarkable expertise in publishing and game development.
The integration within the Nacon group will allow the studio to strengthen its development team and its position as a publisher “IndiaCarsten Fichtelmann, Founder and CEO, and Stephan Harms, COO, will continue to lead the company with great autonomy. Nacon will support future projects by combining the strengths of its sales, publishing and marketing teams.
Daedalic Entertainment, award-winning studio and world-renowned independent publisher
Founded in 2007 and based in Hamburg, Daedalic Entertainment has developed and published over 90 games and is one of the largest and oldest independent video game companies in Germany, with a talented team of 87 people. The studio has developed games for renowned franchises such as Ken Follett’s The Pillars of the Earth, but is also renowned for its own titles including the Deponia series, Shadow Tactics, Blackguards and The Whispered World.
Daedalic Entertainment’s publishing division manages a diverse catalog of PC and console games. The publisher is recognized in the field of game publishing “India” thanks to its single and multiplayer titles such as Witch It!, Unrailed!, Partisans 1941, Hidden Deep, Iratus: Lord of the Dead and Barotrauma. The company has a presence throughout the world, North America and China being the largest markets Daedalic Entertainment currently has nine new games announced for release in 2022.
In 2019, Daedalic Entertainment first announced its collaboration with Middle-earth Enterprises, a division of The Saul Zaentz Company. The Lord of the Rings: Gollum is the first video game to come out of this partnership, opening up the possibility of future projects.
Thanks to this strategic acquisition, the largest ever made by the company, Nacon is strengthening its position as a leader in AA games and benefiting from the synergies between the two publishing houses with complementary profiles to solidify its position as a leading brand in the field of game. The integration of a sixteenth studio in less than 4 years will considerably strengthen Nacon’s portfolio and optimize the group’s operating income.
Transaction terms and conditions
The first stage of the agreement was the signing of a letter of intent with exclusive negotiation. The acquisition of 100% of the capital and voting rights of Daedalic Entertainment will be for a total and maximum amount of €53 million on the following basis:
- a net price of €32 million in cash upon signature;
- a supplement payable 100% in cash, depending on performance until 2026
The transaction is expected to be finalized in 2022, subject to the usual conditions precedent. Nacon’s Board of Directors has approved the completion of this transaction and will meet again when the transaction is finalized.
We knew from our current collaboration on Gollum that Nacon and Daedalic shared common values and goals, with the goal of providing players with unique experiences. It therefore seemed logical to us to deepen the collaboration and we are extremely happy with this acquisition. This represents a significant step in Nacon’s strategy.“
declared Alain FalcCEO of Nacon.
After turbulent times during which we have always managed to distinguish ourselves, I am particularly proud of the last 15 years and the development of the company. Daedalic Entertainment has established itself as an outstanding game publisher and developer, across multiple genres, across all relevant platforms and has cemented this position globally. In collaboration with Nacon, we are now taking the next step, to further develop our catalog of games, both created by our teams and by many talented independent studios. We envision a collaboration based on trust and cooperation for The Lord of the Rings: Gollum, as well as an even brighter future together.“
declared Carsten Fichtelmannfounder and CEO of Daedalic Entertainment.
About Daedalic Entertainment
Daedalic Entertainment publishes and develops high quality games on all platforms. The company offers a diverse lineup of high-quality titles, including classic adventures, RPGs, and strategy and multiplayer games.
Based in Hamburg, Germany, Daedalic is one of Europe’s most reputable publishers and developers. With a total of 32 awards under the German Developers Award (including several awards for the “studio of the year“) and 12 German Computer Game Awards for games that represent the genre such as Deponia, Edna & Harvey, Silence, Shadow Tactics: Blades of the Shogun, Ken Follett’s The Pillars of the Earth, The Long Journey Home, and State of Mind Daedalic holds the record for the two most prestigious gaming awards in Germany, and recent publishing successes include Barotrauma, Unrailed!, Iratus: Lord of the Dead, Hidden Deep and many more.
Daedalic is currently developing the AAA title The Lord of the Rings: Gollum. An action-adventure game that tells the story of Gollum from a perspective never seen before in narrative media, while staying true to JRR Tolkien’s legendary books.