Enad Global 7 AB (publ) ("EG7") has entered into an agreement to acquire Daybreak Game Company LLC ("Daybreak") for a consideration of USD 300 million on a cash- and debt- free basis. To finance parts of the transaction, EG7 has secured SEK 900 million of debt financing, comprised of a SEK 400 million 3-year revolving credit facility and a SEK 500 million 12-month term loan facility. In connection with this, EG7 intends to carry out a share issue of up to SEK 1.7 billion.
EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The group is headquartered in Stockholm with 200 employees in eight offices worldwide. EG7 develops its own original IPs, and act as consultants to other publishers around the world. In addition, the group's marketing department Petrol has contributed to the release of 1,500+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage.
Daybreak is a leading game development company located in San Diego, CA, with additional offices in Austin, TX and Needham, MA. Daybreak possesses globally recognized third party IPs combined with valuable original IPs. Third party IPs include DC, Lord of the Rings and Dungeons & Dragons.
The acquisition is in line with EG7’s strategy to make acquisitions to establish a stronger industry position.
Baker McKenzie is legal advisor to EG7 in the acquisition and the related raising of capital. The team consisted of advisers from the firm's offices in Sweden and the US, and included several practice groups. The team consisted mainly of M&A: Anna Orlander, Ian Gulam and Erik Holmgren, Capital Markets: Stefan Balazs, Henric Roth and Olof Larsson as well as Banking & Finance; Markus Meuller and Eric Brinck, all from Stockholm. David Malliband from the Chicago office and Airi Hammalov and Andrew Cohen from the New York office acted as lead on the US side.
Baker McKenzie's global video games industry team advises on a wide range of national and cross-border transactions in the video games industry.