Coatsink Software, the British developer currently helping to develop titles including Jurassic World Aftermath and Sniper Elite VR has been acquired by Thunderful Group; a Nordic group which also comprises Image & Form, Zoink and Rising Star Games.
The acquisition by Thunderful will see the group pay £23 million for Coatsink – which was formed in 2009 by Tom Beardsmore and Paul Crabb – half in cash and half in newly issued ordinary Thunderful shares. Additionally, an earn-out component “will be paid in a mix of cash and Thunderful shares, is capped at GBP 42.5m which is reached only if Coatsink exceeds its financial targets for 2021 and 2022,” notes a press release.
Coatsink works across the videogame industry on its own projects as well as work-for-hire and publishing projects. Best known in the virtual reality (VR) industry for being an early pioneer with Esper and Augmented Empire for Gear VR, recent projects include Oculus Quest’s Shadow Point alongside publishing Downpour Interactive’s Onward for the standalone headset.
“We have established a good relationship with the founders and key personnel of Coatsink and believe that their strong work ethics and corporate culture will be a very valuable strong complement to Thunderful’s existing businesses. Although it’s just a first step, this is a good example of how we intend to leverage the Group’s powerful cash flow going forward,” said Thunderful Group’s CEO, Brjann Sigurgeirsson in a statement.
As part of Thunderful Group’s acquisition, Coatsink will remain an independent development studio as it continues development on five announced and unannounced in-house projects.
This is the latest in a continued slew of acquisitions affecting the VR landscape. The biggest was last month with Microsoft acquiring Zenimax Media and Bethesda for $7.5 billion USD. Koch Media purchased Arizona Sunshine, Skyworld and Ghost Patrol VR creator Vertigo Games in September, whilst Facebook picked up Ready at Dawn, the creator of Lone Echo and currently working on Lone Echo 2 in the summer.
As further acquisitions involving the VR industry are made, VRFocus will let you know.