Modern Times Group (MTG) has announced that it has acquired UK developer and publisher Hutch, known for its free to play mobile titles such as Rebel Racing and F1 Manager.
The acquisition is expected to cost $375 million – $275 million as up front consideration, with the rest coming out of earn-out payments of an expected total of $100 million. Due to this acquisition, MTG has decided to postpone the publication of the year-end report for 2020 to February 25th, 2021.
The acquisition of Hutch marks the third material investment in a gaming company by MTG and the first made through the new gaming holding company, GamingCo, which was revealed on Monday.
Hutch, who has a 100+-strong team, 70 of whom are developers, generated approximately $56.3 million in revenues, $14.0 million in EBITDA and $13.3 million in EBIT, during the first nine months of 2020.
Maria Redin, CEO and Group President of MTG, commented: “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. 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,” said Shaun Rutland, CEO and Co-founder of Hutch, “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. 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.”