Shares in independent premium games developer and publisher Team17 (TM17:AIM) gained 3.4% to 738p after it acquired German games developer Astragon Entertainment for up to €100 million.

The initial consideration is €75 million (around £63 million) with a contingent consideration of up to €25 million payable in cash on delivery of certain profit performance over the next two years.

Alongside the deal, Team17 also announced a successful share placing of 11 million new shares at yesterday’s closing share price of 714p, raising gross proceeds of £78.6 million, which will fund the Astragon purchase.


The acquisition enables the company to enter the simulation game category, strengthening Team17’s position as a provider of games to a broad audience.

Foundered in Dusseldorf, Germany in 1998, Astragon has developed intellectual property, such as firefighting, police, bus and construction simulators, non-violent co-operative games with high-specification technical details and realistic environments across PCs, gaming console and mobile apps.

The team at Astragon have significant experience and relationships with some of the world's leading vehicle brand manufacturers, games and media companies.

Crucially for investors, it also has a consistently profitable organic growth track record. Compound average annual revenue growth was 18% between 2017 and 2020 and 45% for earnings before interest, taxes, depreciation, and amortisation.

In the year to 31 December 2021, Astragon generated revenues of around €26 million and EBITDA of approximately €5.7 million.

The acquisition is expected to generate mid to high single digit accretion in earnings per share.


Shore Capital leisure analyst Katie Cousins commented: ‘We are pleased with the progress of TM17 and the potential uplift to our forecasts once integrated.

‘We see the Group as growing its offering and exposure into exciting growth marketing whilst continuing to retain its core focus and expertise.’

Cousins expects Astragon to drive its EBITDA margins of around 22% towards Team 17’s mid-30% adjusted EBITDA margins over time.


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Issue Date: 14 Jan 2022