Stillfront Group AB (publ) (“Stillfront”) has today through its subsidiary Moonfrog Labs Private Limited (“Moonfrog”), entered into and closed an agreement with Gameberry Labs Private Limited (“Gameberry”) for an early conclusion of Gameberry’s remaining payment obligations, otherwise concluding in 2030, under an existing settlement agreement related to Ludo Games and ancillary titles. To simplify operations for both companies going forward, Moonfrog and Gameberry have agreed to resolve all current and future payment obligations through a one-time upfront cash payment from Gameberry to Moonfrog of USD 26.5 million, corresponding to approximately SEK 245 million.
Additionally, Stillfront has through its subsidiary Stillfront Germany GmbH, signed an agreement to divest OFM Studios GmbH (“OFM”) to the founder of OFM through a management buyout for a total consideration of EUR 2.1 million, corresponding to approximately SEK 23 million. Closing of the transaction took place in May.
The proceeds will enable Stillfront’s continued deleveraging, while the combined effect from the upfront settlement and the divestment is expected to reduce net revenue in ‘Other games’ by approximately SEK 110 million and adjusted EBITDAC by approximately SEK 90 million over the next twelve months.
“These transactions, executed as a part of the ongoing strategic review, support our ambition to simplify our business and improve the quality of our revenue streams by concentrating on our key franchises. I would also like to express my appreciation to the OFM team for the journey we have taken together”, says Alexis Bonte, President and Group CEO of Stillfront Group.