Gamigo Issues Its Official Statement About the Purchase of Trion Worlds
After a day of news about the acquisition of Trion Worlds by Gamigo, the German games publisher has finally issued its official statement. The press release cites three main points about the buyout including extending its games portfolio, the strengthening of its position "as a leading EU and American gaming company" and the potential revenue increase as a result of the Trion World's IPs.
Here is the press release in its entirety.
Hamburg, October 23, 2018 – The gamigo AG („gamigo Bond“ WKN: A2NBH2 / ISIN: SE0011614445) has acquired major assets from Trion Worlds Inc., a leading US gaming company with offices in Redwood City (California) and Austin (Texas) and has as publisher and developer of online and console MMO-games, well-known games such as Rift, Defiance, Trove and ArcheAge in its portfolio. Trion was acquired via an “Assignment for the Benefit of the Creditors” process, in which the buyer only buys those assets, with which he wishes to continue the business. In this process, gamigo group acquired the majority of the assets, including the platform, takes over employees to operate the business and gets the full publishing rights of the games. The IP’s of the Trion Worlds games have been acquired by gamigo’s sister company Padmapani GmbH and are made available for gamigo group, worldwide and exclusive.
“The successful acquisition and subsequent integration of Trion into our portfolio substantially strengthen gamigo’s position in the European and American gaming market. On the one hand, we add similar and successful brands and games to the already broad gamigo portfolio, on the other hand, we are looking to unlock substantial synergies with the group’s existing business to further benefit from the remarkable growth potential that the gaming market offers.”, comments gamigo’s CEO Remco Westermann.
Through the acquisition of Trion, gamigo’s management expects additional revenues of over USD 18 million and an additional EBITDA of USD 1 to 4 million for 2019. This estimate depends on the success of the restructuring and integration of Trion and is mainly based on potential economies of scale and synergies. The exploitation of economies of scale and synergies is an elementary part of the gamigo strategy and has been proven several times in acquisitions in the past.
According to Trion employees, it seems as if Gamigo, while "taking over employees to operate the business", has already let go the majority of the 200 staff members of Trion Worlds.
Source: Gamigo corporate site