REG - tinyBuild, Inc. - Acquisition of Versus Evil and Red Cerberus

tinyBuildAnnouncement

23/11/2021 07:00

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RNS Number : 2461T  tinyBuild, Inc.  23 November 2021

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23 November 2021

 

tinyBuild, Inc

 

("tinyBuild" or the "Company")

 

Acquisition of Versus Evil and Red Cerberus

tinyBuild, a leading video games publisher and developer with global
operations, is pleased to announce the acquisition of US-based Versus Evil,
the video game publisher of critically acclaimed titles such as The Banner
Saga, and its subsidiary Red Cerberus, its games service provider located in
Sao Paolo, Brazil.

 

Versus Evil will continue to operate as an independent label expanding
tinyBuild's publishing capacity and contributing to its IP discovery process
in new genres such as RPG and strategy. Founded in 2013 by Steve Escalante,
who will continue to run the operations, Versus Evil has published 32 titles
on all major platforms, which will bring tinyBuild's portfolio to over 70
titles. Since 2017, Red Cerberus has been providing Versus Evil and
third-party studios with quality assurance, testing and localization.

 

The initial consideration for acquiring Versus Evil and Red Cerberus will be
$12.5 million in cash. Deferred payments over the following three calendar
years will be settled with newly issued tinyBuild shares of up to $18.8
million(( 1 )), subject to stretching financial targets being met. The total
maximum consideration is up to $31.3 million.

 

Versus Evil and Red Cerberus together generated $12 million in revenues and a
$0.2 million EBITDA loss in 2020(( 2 )), a year of heavy investment in Red
Cerberus. tinyBuild expects that the deal will be marginally accretive in
2021, and approximately 10% accretive at EBITDA level in 2022, with greater
potential for return in the following years. In addition, Versus Evil and Red
Cerberus will add over 250 staff(( 3 )) to the Company, bringing the total
number to over 400.

 

A conference call for analysts, hosted by tinyBuild Alex Nichiporchik (CEO and
co-founder), Tony Assenza (CFO) and Jaz Salati (Head of M&A and IR), will
take place at 8.15am (GMT) today. Please email tinyBuild@secnewgate.co.uk
(mailto:tinyBuild@secnewgate.co.uk) for details.

 

Alex Nichiporchik, Chief Executive Officer of tinyBuild, commented:

 

"As a public company, we have a powerful platform from which we can deliver on
our organic and M&A growth ambitions. We are delighted to announce the
acquisition of Versus Evil, a highly-regarded global video games publisher, as
we continue to scale up our ambitions. Red Cerberus also gives us the
opportunity to expand our access to talent in South America.

 

"Our goal is to expand our position as a leading global developer and
publisher, focusing on IP ownership while creating long-term scalable
franchises across multiple media formats. In addition, we are actively looking
at a number of other potential acquihires and larger scale acquisitions to
enhance our strategic and operational position. We remain excited and
confident about delivering on our strategy for this year and beyond."

 

 

Enquiries:

 tinyBuild, Inc                                                                 investorrelations@tinybuild.com (mailto:investorrelations@tinybuild.com)

 Alex Nichiporchik - Chief Executive Officer and co-founder

 Luke Burtis - Chief Operating Officer and co-founder

 Antonio Jose Assenza - Chief Financial Officer

 Giasone (Jaz) Salati - Head of M&A and IR

 Zeus Capital (Nominated Adviser and Joint Broker)                              +44 (0)20 3829 5000

 Nick Cowles, Richard Kauffer (Corporate Finance); Benjamin Robertson (Equity
 Capital Markets)

 Berenberg (Joint Broker)                                                       +44 (0)20 3207 7800

 Ben Wright, Mark Whitmore, Alix Mecklenburg-Solodkoff,

 Milo Bonser

 SEC Newgate (Financial PR)                                                     tinybuild@secnewgate.co.uk (http://tinybuild@yellowjerseypr.com)

 Robin Tozer, Bob Huxford, Megan Kovach                                         +44 (0)7540 106 366

 

 

About tinyBuild:

Founded in 2013, tinyBuild (AIM: TBLD) is a leading premium AA-rated and indie
video games publisher and developer. tinyBuild strategically secures access to
IP and partners with developers to establish a stable platform on which to
build multi-game and multimedia franchises. tinyBuild has a strong portfolio
of over 40 titles, and its upcoming pipeline includes over 20 new titles
currently in development.

 

Headquartered in Seattle, Washington, USA, the Company has key operations
worldwide, with employees, contractors or partners in multiple locations
across five continents. tinyBuild's geographic diversity enables it to source
high-potential IP, cost-effective development resources and a loyal customer
base through innovative grassroots marketing.

 

tinyBuild was admitted to AIM, a market by the London Stock Exchange in March
2021.

 

For further information, visit: www.tinybuildinvestors.com
(http://www.tinybuildinvestors.com) .

 

(( 1 )) The price for deferred shares will be determined on a 30-day VWAP
leading up to December 31 for each earn-out period in 2022, 2023 and 2024

(( 2 )) Unaudited

(( 3 )) Employees and independent contractors

 

 

 

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