STOCKHOLM, Dec 9 (Reuters) - Sweden's MTG MTGb.ST has agreed to buy mobile racing games maker and publisher Hutch Games for up to $375 million, it said in a statement late on Tuesday.
MTG will pay $275 million upfront for Hutch, whose games include F1 Manager, Top Drives and Rebel Racing, and expects to pay another $100 million in earn-out payments based on Hutch's financial performance in 2021-2024.
"The acquisition of Hutch is in line with MTG's strategy to build up a portfolio of high-quality gaming companies and marks the beginning of a new journey with the ambition for further organic and acquisitive growth for MTG," the company said.
The upfront payment will be financed through MTG's existing cash and a 1.8 billion Swedish crown ($213 million) bridge loan facility. MTG said it was evaluating a new share issue to refinance the facility.
Hutch had $56.3 million in sales in the first nine months of 2020, growing 158% year-on-year, and an operating profit (EBIT) of $13.3 million. It had an average of 5.4 million monthly active users in the period.
The deal is expected to be completed in December.
($1 = 8.4366 Swedish crowns)