Team17 PLC spends 100 million euros adding simulation games to its list

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Düsseldorf-based astrogon specializes in simulation games based on firefighting, bus driving and law enforcement

Team17 has raised £80m to pay for the acquisition of German game developer Astragon Entertainment as the AIM-listed group continues to expand.

Announced last night, the placement will again take Team17’s market value to over £1billion, with chief executive Debbie Eastwick subscribing for around £1million in shares in an issue priced at around closing from yesterday’s market of 714p.

Düsseldorf-based astrogon specializes in simulation games based on real-life activities such as firefighting, bus driving and policing and cost Team17 €100m (£83m) with a cash advance of 75 million euros.

Team17 added that astragon has seen 18% year-on-year revenue growth since 2017 and will be integrating it into a new category of companion simulation games.

The German group also has an extensive catalog of franchises and evergreen intellectual property with more than 20 games developed over the last 10 years and a pipeline of products in development.

astragon generated €26 million in revenue and underlying profit of €5.7 million in 2020.

Eastwick said: “We believe we are joining forces with one of the leading experts in the field of simulation games.

“They have decades of experience creating and publishing games, have built an exceptional and very dedicated community, and have developed an exceptional portfolio of intellectual property in this genre.”

The shares rose 3.6% to 740p.

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