On Thursday, February 21st, THQ Nordic raised around $225 million to put towards gathering new shareholders. In doing so, the group issued out 11 million Class B shares with the intention to “finance new acquisitions of franchises, game development studios, or other assets which complement the operations, and to enable a higher rate of investment in the development of the company.”
Investors quickly bought in, raising the value of the company significantly. The point? To acquire even more properties. According to the press release, THQ Nordic plans to “finance new acquisitions of franchises, game development studios or other assets which complement the operations, and to enable a higher rate of investment in the development of the Company.”
THQ Nordic has been acquiring companies left and right, so this expansion comes as little surprise. In November of last year, the group purchased Bugbear Entertainment and Coffee Stain Studios. Earlier than that was Koch Media and Deep Silver, owners of the Dead Island, Saints Row, and Metro franchises. That’s not to mention the 55 games in development on top of 35 unannounced projects underneath the publisher.
In a statement to GamesIndustry.biz, CEO Lars Wingefors commented on the change:
“Ultimately, on the very long-term basis I want all my companies to be financed through the cashflow from making great games that fans and consumers will enjoy and pay for. However, our strategy right now is to build something substantial, diversified and evergreen through acquisitions and substantial organic development growth. As you know, we are just approx 0.5% of the global market and have a long way to go before we reach the next level.”
“By not using aggressive debt, like loans and bonds, as many others [companies do], we put all stakeholders in the same boat. It also creates a safer, long-term environment for all our great employees and business partners that don’t have to worry about our balance sheet for the next paycheck.”
As of 2019, THQ Nordic also purchased Warhorse Studios, developer of Kingdom Come: Deliverance, Outcast from Appeal Studios, and 18Point2. It’s hard to say where the company will move next, but this is an exciting time for fans of these properties. We’ll have to see what the rest of the year brings.