Warhorse Studios Has Been Acquired by THQ Nordic

Warhorse Studios Has Been Acquired by THQ Nordic

THQ Nordic has been expanding quite a bit over the last several months, acquiring studios and IPs left and right. In a press release, they made a big announcement: Warhorse Studios has been acquired by THQ Nordic. Warhorse Studios is a previously-independent studio responsible for Kingdom Come: Deliverance, an RPG set in 14th century Bohemia. With this acquisition, THQ Nordic now operates 15 game development studios.

Here’s the details of the acquisition:
  •  THQ Nordic AB (“THQ Nordic” or “The Company“) acquires 100 percent of the shares in Warhorse Studios s.r.o. (“Warhorse“) through its indirectly wholly owned subsidiary Koch Media GmbH (“Koch Media“). Warhorse is a leading game developer of RPG games for PC and Console. The studio is based in Prague, making it THQ Nordic’s first owned development studio in the Czech Republic.  
  •  All intellectual property rights for Kingdom Come: Deliverance are included in the acquisition.
  •  The preliminary purchase price amounts to 42.8 MEUR, corresponding to 33.2 MEUR on a cash and debt free basis. The purchase price is allocated to 40.4 MEUR in liquid funds through the Company’s existing cash and corresponding to 2.4 MEUR with newly issued B shares in THQ-Nordic. The price of the shares is based on a volume-weighted average price of 173.87 SEK per share and is associated with so-called lock-up commitments.
  •  For the period January-December 2018, Warhorse generated Net Revenues1 of approximately 42 MEUR and an adjusted EBIT1 of approximately 28 MEUR.

In the press release, THQ Nordic mentioned that Koch Media, a THQ Nordic subsidiary, has a “robust existing relationship” with Warhorse Studios, since Deep Silver (a Koch Media subsidiary) has acted as publisher for Kingdom Come: Deliverance.

Lars Wingefors, CEO of THQ Nordic AB, said that ”Warhorse Studios is one of the leading independent studios in Europe and I am proud to welcome them to the THQ Nordic group. Kingdom Come: Deliverance, which has now sold over 2 million copies, has been a great success since the release exactly one year ago. I look forward to continue working with the founders who will continue managing the studio under strong creative freedom for many years to come.”

THQ Nordic is clearly trying to grow as much as possible and it’s fascinating to watch. It’ll be interesting to see what Warhorse Studios is working on now that they’ve been acquired.

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