iCandy Interactive (ASX: ICI) is expanding again after revealing it is acquiring 60% South East Asian gaming backend developer Gameconomy for $497,297 in cash and shares.
The acquisition is part of iCandy’s “aggressive” merger and acquisition strategy, which will see it become a “global gaming developer power house”.
Malaysia-based Gameconomy is a boutique software company that specialises in gaming technology relating to real-time in-game analytics and player-versus-player (PVP) mechanics.
Gameconomy has been developing metaverse-related technologies and is working with private and public clients to advance smart contracts technologies.
Noteworthy clients include Malaysia’s flagship e-government solutions and services provider MYEG Services.
Gameconomy has also provided gamification and tech solutions to what iCandy describes as an “impressive” client portfolio comprising the Malaysian Government, Malaysia Airports, Allianz Insurance, QuickSchools, Sunway group of companies, and Genting Resorts World.
The company has progressed through two global incubator/accelerator programs: founder institute and HYPE spin accelerator.
Metaverse PVP game
As part of the deal, iCandy will provide resources to assist Gameconomy in launching a new metaverse-related real-time PVP game in the first half of this year.
It is planned the game will incorporate mechanics for character improvements and growth, as well as environmental attributes and characteristics.
“The game also features a highly integrative feature that allows gamers to interchange in-game assets,” iCandy noted.
Rationale for acquisition
According to iCandy, acquiring 60% of Gameconomy is an “attractive opportunity to enhance shareholder value”.
It is expected Gameconomy will improve iCandy’s backend tools and capabilities and boost its venture into metaverse gaming.
Gameconomy’s experienced developers are expected to “contribute significantly” to iCandy’s creating AAA games for the metaverse.
Transaction terms
Under the deal, iCandy will invest $248,632 of cash into Gameconomy, which will give it a 30% stake.
A further 30% will be secured for $248,632 with half payable in cash and the remaining $124,316 to be paid in iCandy shares.
The transaction is dependent on satisfactory completion of due diligence which is anticipated to be done by 14 February.
Lemon Sky Studios acquisition approved
Today’s news follows iCandy securing unanimous approval yesterday in its bid to acquire South East Asia-based game art and animation company Lemon Sky Studios.
iCandy says it expects to receive $23.23 million from a tranche two placement of its shares and intends to complete the acquisition of Lemon Sky as soon as possible.
Lemon Sky has an extensive portfolio of AAA games and has worked on major game titles such as Uncharted: The Lost Legacy, the Last of Us Part 2, Final Fantasy VII and the Final Fantasy XIV.
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