10TACLE STUDIOS AG expects synergy effects arising from the acquisition to produce an EBIT effect in excess of EUR 1.5 million in the current fiscal year. The Company expects even more pronounced positive effects from the acquisition of the studio in fiscal year 2008.
“Qualified growth is one of the goals we set for ourselves for 2007. Incorporating Stormregion into the 10TACLE STUDIOS Group is consistent with our close cooperation with the company, as this provides us with another highly qualified studio that meets all the demands of state-of-the-art game development, while also making its own technological contribution to the Group,” said Michele Pes, CEO of 10TACLE STUDIOS AG. “Our goal is to become the market leader among independent development studios. The acquisition of Stormregion brings us another step closer to this goal,” Pes continued.
Stormregion is currently developing the game entitled “Codename Panzers: Cold War,” which will be distributed throughout Europe by Electronic Arts. The acquisition of Stormregion represents another key step for 10TACLE STUDIOS AG in expanding its international development resources. The Hungarian company has significantly expanded its capacities in recent years, and is one of Hungary’s first officially licensed developers for Xbox 360 and PlayStation 3. Stormregion is expected to be commissioned to develop two additional titles this year. Stormregion achieved worldwide fame in 2004 with the development of its real-time strategy game “Codename: Panzers,” which has received several awards. Millions of copies of the games in the “Codename: Panzers” series have been sold around the world.
In addition to over €2.0 million in equity and the IP rights to the “Codename: Panzer” series, Stormregion has its own development tool, “GEPARD.” This technology has already been upgraded for next generation games, meaning it can also be used at other 10TACLE STUDIOS AG Group development studios.
Although it was agreed not to disclose the purchase price, it may be gradually reduced over time, depending on whether a number of targets are met.