Mobile games developer Huuuge says it is looking at five takeover targets
20/04/2021 12:42
By Anna Banacka
GDANSK, April 20 (Reuters) - U.S.-registered mobile games
developer Huuuge Inc. HUGEP.WA is looking closely at five
acquisition targets as it seeks to accelerate its growth, its
chief executive said on Tuesday, after the company reported a
$83 million net loss for 2020.
Warsaw-listed shares of Huuuge, which has a strong presence
in Poland and in February conducted the country's largest gaming
sector initial public offering (IPO), were more than 5% lower by
1230 GMT, in response to the net loss which was driven by
surging financial costs.
"We look for a buy that brings us more scale and success. We
have 5 build and buy opportunities in active pursuit," Huuuge's
Chief Executive Anton Gauffin told a press conference.
"There are a lot of companies we're talking with including
some companies from Poland but our approach is very much
global," he added.
Boasting companies such as Cyberpunk developer CD Projekt,
Poland has developed into a leading video game exporter due to
low labour costs, a young, educated workforce and a thriving
gaming tradition rooted in the Communist era.
Huuuge raised around $100 million net from its IPO, which it
said it would mostly spend on takeovers.
Gauffin reiterated that Huuuge has no plans to pay a
dividend.
"Never say never but it's not a grand active topic," Gauffin
said.
(Reporting by Anna Banacka and Adrianna Ebert
Editing by Agnieszka Barteczko, Kirsten Donovan)
((anna.banacka@thomsonreuters.com;
adrianna.ebert@thomsonreuters.com))