This will make it the biggest pure-play recreation improvement firm on the Australian Stock Exchange (ASX), and in Australia and SEA too.
With greater than 450 staff, the acquisition is projected to generate at least A$17 million (US$12.36 million or RM51.5 million) income every year.
In-house recreation design and improvement
As a refresher, iCandy’s core enterprise is in recreation improvement, recreation publishing, and e-sports, with its titles performed by over 360 million cellular players worldwide.
Lemon Sky is a CGI artwork and animation studio that gives outsourced providers to clientele together with Microsoft Studios, EA Entertainment, Disney, and Nickelodeon.
Back in November 2020, it was introduced that Lemon Sky and that iCandy had been collaborating to create a brand new gaming firm for AAA cellular video games.
iCandy’s COO, Desmond Lee, instructed Vulcan Post that the brand new firm, known as Sky Candy, is now an unbiased studio and focuses on AAA cellular video games.
While iCandy is thought for publishing cellular recreation titles, Desmond instructed us that the acquisition of Lemon Sky will convey the extra growth of iCandy into the console and PC area.
Prior to this, iCandy hadn’t outsourced any artwork and animation providers from Lemon Sky for its cellular video games. But the staff has recognised Lemon Sky’s strengths by way of its animation work for AAA gaming titles equivalent to Overwatch 2, Call of Duty: Infinite Warfare, and SimCity, so this acquisition speaks for itself, based on Desmond.
“Collaborative partnerships in the creative industry are pertinent to keeping things fresh and innovative. We are positive that this merger will encourage creative working methods and bring about new ideas,” mentioned Cheng-Fei Wong, CEO of Lemon Sky.
However, Desmond clarified that there is not going to be a change in management following this acquisition, and Lemon Sky will proceed its outsourcing work.
Into the metaverse
Other than elevated manpower, income, and capabilities, each groups are assured that this acquisition will assist the group push in the direction of constructing the prolonged metaverse.
Did : The metaverse is a digital actuality that mixes features of social media, on-line gaming, augmented actuality (AR), digital actuality (VR), and cryptocurrencies to permit customers to work together nearly.
This shall be finished by way of each firms’ regional growth plans in growing informal and AAA gaming on the blockchain for the open metaverse.
Although Desmond wasn’t in a position to share any teasers on what they’ve in retailer to execute this, he did inform us that there are already just a few plans within the pipeline.
After all, the event of the open metaverse remains to be in its nascent phases of conceptualisation and leaves a lot room to be explored.
“While our current focus is on the gaming community within this new and quickly expanding space, we have our sights on going beyond that to where opportunities present themselves,” Desmond shared.
An enormous valuation for the acquisition
According to iCandy’s press launch, this acquisition shall be at a valuation of A$44.5 million (US$32.4 million or RM135 million). It is predicted to be fulfilled along with money and newly issued iCandy shares.
In parallel to the merger, iCandy has raised A$40 million (US$29.1 million or RM121.2 million) from institutional traders by way of a placement that’s oversubscribed (the place there’s a increased demand for shares than the precise provide).
The funding spherical was led by one other gaming firm investing within the metaverse, Animoca Brands, a world chief in gamification expertise and blockchain gaming.
Animoca Brands additionally has a portfolio of over 100 investments in NFT-related firms and decentralised tasks contributing to constructing the open metaverse, so it’s probably we’ll be seeing fascinating tasks rising from iCandy’s Lemon Sky acquisition quickly.
Featured Image Credit: Lemon Sky Studios