Games developer makes US$26.5million acquisition
Yorkshire games label, Team17, has acquired award-winning app developer, StoryToys, for $26.5m.
StoryToys specialises in “edutainment” apps for children under the age of 8 and has worked with major brands including The Lego Group, Disney, Pixar, Sesame Workshop and Hasbro.
To date it has had more than 100m downloads and won a number of awards, including a 2021 Kidscreen Award.
“I am thrilled to be welcoming StoryToys into the Team17 family and believe our shared culture and values perfectly align. In StoryToys, we are acquiring a highly creative and successful team whose ability to both entertain and educate children is truly best in class,” said Debbie Bestwick MBE, CEO of Team17.
“Their track record is without question but the depth of talent that exists within the business gives us an unrivalled position within a hugely exciting and high growth edutainment area.
“We look forward to working closely with the whole StoryToys team and are delighted to be able to not only support their ambitious growth prospects but to provide a strong and stable platform to accelerate their development. Team17 prides itself on its culture and on embracing ambitious management teams – today’s announcement is an example of how we intend to make that a reality.”
The initial sum for the acquisition is $26.5m, with a further maximum $22.5m payable in cash on “delivery of certain targets by the vendors within three years.”
Team 17, which posted record figures back in March, with £26.2m profits and £83m in revenue said that the acquisition was “profitable” and the ambition was to grow StoryToys to be the “global number one children’s edutainment brand for ages 8 and under.”
It added that the strategic move came because demand for educational entertainment apps has accelerated as a result of the COVID-19 pandemic. According to Technavio, the global educational apps market forecast to grow by over US$46 billion between 2020 and 2024.
“Team17 is the perfect home for StoryToys as we enter into this incredible new chapter. Our goal is to be the number one provider of edutainment content for young children. Collaborating with Team17 will make that a faster and more exciting journey,” added Emmet O’Neill, CEO of StoryToys.
“We believe in creating the best possible digital learning experiences for children. We look forward to the possibilities that are opened up by collaborating with what we believe to be the best partner to deliver our ambitions.”