Enthusiast Gaming acquires Addicting Games in $35m deal
Buyout seeks to strengthen firm's expansion into the casual games market
Canadian media firm Enthusiast Gaming has acquired casual games maker Addicting Games for $35 million.
The deal is made up of a $10 million cash payment and $12 million in stocks, with deferred payments of $7 million and $3.8 million to be paid on the first and second anniversaries of the closing date, respectively.
Addicting Games, founded in 2002, is an online portal that plays host to over 1,500 casual games. Enthusiast also acquired a number of other brands as part of the deal, including browser-based typing game TypeRacer, and educational site Math Games.
"I'm thrilled to announce the acquisition of Addicting Games, a pioneer in casual gaming with nearly twenty years of experience building a loyal audience of gamers," said Enthusiast Gaming CEO Adrian Montgomery.
"Addicting Games integrates with existing advertising and subscription revenue streams and unlocks new streams such as in-game purchases, and other affiliate type deals. At the same time, our media platforms and influencers will expand the reach of Addicting Games' current titles. I look forward to welcoming the Addicting Games team to the Enthusiast Gaming family."
Last August, Enthusiast picked up YouTube gaming network Omnia Media in a deal worth $11.2 million. It also runs professional esports division Luminosity Gaming, which it merged with in 2019.
The company also owns a number of gaming verticals, including Destructoid, The Escapist, and Pocket Gamer.