EG7 acquires Daybreak
Multi-disciplinary gaming firm buys EverQuest, H1Z1 studio for $300 million
Enad Global 7 continued its holiday shopping today, announcing the acquisition of Daybreak Game Company, the outfit behind EverQuest, H1Z1, and a variety of massively multiplayer online games.
The deal values Daybreak at $300 million paid in a mix of cash and newly issued EG7 shares. It is the second announced acquisition for EG7 in as many weeks, coming off last Wednesday's purchase of Vancouver-based Mechwarrior studio Piranha Games.
"Daybreak is a perfect fit for EG7, we are a family of companies with complementary skills and expertise, combined to form a major video games business to deliver amazing games and experiences to gamers around the world," EG7 CEO and co-founder Robin Flodin said. "Daybreak has a rich portfolio of owned and third-party IPs and we look forward to adding to that portfolio of games in the years to come. "
Originally known as Sony Online Entertainment until a split with parent company Sony, Daybreak runs a stable of games including H1Z1, EverQuest, EverQuest 2, Planetside 2, and DC Universe Online. It also publishes Standing Stone Games' MMOs The Lord of the Rings Online and Dungeons & Dragons Online.
As for whether the acquisition would result in layoffs for any Daybreak employees, an EG7 representative did not immediately respond.
In August, Daybreak acquired Cold Iron Studios, a San Jose-based studio working on a game using the Alien IP.
A move to EG7 would be the fifth time ownership of Cold Iron has changed hands in the past two years, but it's not entirely clear the studio is being picked up along with the rest of Daybreak.
The EG7 acquisition announcement mentions that Daybreak is headquartered in San Diego with development studios in Austin and Boston, but makes no mention of Cold Iron or a San Jose studio. Inquiries to Cold Iron and the EG7 representative were not immediately returned.
Daybreak was acquired from Sony and took its current name in 2015, announcing that it had been acquired by investment management firm Columbus Nova.
When Columbus Nova's Russian parent company had its assets frozen by the US government in 2018, Daybreak said it was never owned by Columbus Nova and instead was only ever owned by one of the firm's partners, Jason Epstein.
EG7 has said that as Daybreak's main shareholder, Epstein will hold approximately 10% of EG7 shares after the deal closes.