THQ Nordic has expanded its developer family with the acquisitions of Bugbear Entertainment and Coffee Stain.
The Swedish publisher revealed the acquisitions alongside the release of its Q3 earnings report. Both are a part of the company’s wider strategy of growth through acquiring studios and franchises.
The company has purchased 100 per cent ownership of Coffee Stain for, which has the publishing rights for Deep Rock Galactic alongside IP ownership of Goat Simulator and Sanctum. THQ Nordic's buyout is worth $34.77 million (SEK 317m), with more on the table should Coffee Stain meet agreed upon milestones.
$44.4m (SEK 405m) is on the cards should Coffee Stain upon completion of "certain projects" within the next 36 months. An additional $14.26m (SEK 130m) is on offer should the studio reach EBT over $57.1m (SEK 520m) by December 31st 2023.
The studio has hit net sales of more than $54.8m (SEK 500m) and sold more than 16 million game units since opening in 2010.
THQ Nordic meanwhile acquired a 90 per cent stake in Wreckfest developer Bugbear Entertainment, with the option of purchasing the remaining 10 per cent later down the line.
“We are patiently working on adding more great companies into the group, both developers and publishers," said THQ Nordic CEO Lars Wingefors.
"This is a daily proactive activity within the parent company, as well as within both operating groups.
"We are engaging with a large number of companies across the globe with respect to joining the group. I am confident about our strategy and capability to benefit from the ongoing shift in platforms and technologies.”
Besides acquisitions, THQ Nordic had a strong quarter. Net sales increased year-over-year by 1,403 per cent, reaching $139.6m (SEK 1,272.7m). Profits, meanwhile, hit $7.1m (SEK 65m), up from $2m (SEK 19m) in the same period last year.
Games like Titan Quest, Red Faction Guerilla Re-Mars-tered and This is the Police 2 were named as key drivers of growth in the quarter.