6 June 2022
(“TruFin” or the “Company”)
Acquisition of Magic Fuel Games, Inc. and Platform Contract
TruFin is pleased to announce that its subsidiary, Playstack Limited (“Playstack”), a leading games technology business headquartered in London, has acquired Magic Fuel Games Inc. (“Magic Fuel”), a remote games development studio based in San Francisco, USA. Magic Fuel was founded in 2015 and has since built a portfolio of compelling IP that leverages the teams’ years of experience in the simulation and city build games genre.
The total consideration for the acquisition is US$3m in cash, of which $1.5m is payable immediately and $1.5m is payable in twelve months’ time. Simultaneous with the acquisition, Playstack has signed a significant contract with a global technology platform which Magic Fuel will be instrumental in delivering. As a result, the acquisition is expected to be earnings neutral to TruFin in 2022 and accretive from 2023.
In the year to 31 December 2021 Magic Fuel made a loss before tax of $2.1m. At the point of acquisition Magic Fuel had net assets of $0.2m.
In addition to the exciting games portfolio, the acquisition adds a breadth of experienced game development talent to Playstack’s roster, including the appointment of Magic Fuel’s CEO, Kevin Shrapnell, as Playstack’s Chief Operating Officer.
Harvey Elliott, Chief Executive Officer of Playstack, commented:
“I have a great deal of respect for Kevin and his leadership team having worked with them at Electronic Arts. They will significantly strengthen the depth of our team and add further exciting IP to Playstack’s portfolio which we believe we can help to leverage through our existing publishing channels and relationships.”
Kevin Shrapnell, Chief Executive Officer of Magic Fuel, added:
“We have long admired the way in which Playstack approaches games publishing and are thrilled to become part of this exciting organisation. Magic Fuel and Playstack have a shared belief in the untapped potential that simulation-based games present, and we are delighted to be able to add our passion and expertise for this genre to that of the Playstack team.”Back