Listed mobile game developer Animoca Brands (ASX: AB1) has acquired US-based developer Pixowl for $6.65 million.
Pixowl is an independent mobile game company with a portfolio that includes games like The Sandbox, Peanuts: Snoopy's Town Tale, Garfield: Survival of the Fattest, and Goosebumps HorrorTown.
The deal saw Animoca put up $709,133 in cash with the rest of the consideration in shares.
It's a promising step for the Aussie developer, particularly considering Pixowl generated $2.46 million in revenue for the first half of 2018 and also has significant licensed properties under its control.
Pixowl's major game, The Sandbox, allows users to create their own worlds and ecosystems. The game has over 40 million downloads and over one million monthly active users.
Pixowl is currently developing a blockchain version of The Sandbox in partnership with Animoca Brands, HTC and Dapper Labs. In late 2018, Pixowl plans to launch a marketplace for user-generated non-fungible tokens where players will trade game assets and monetise time and effort they have invested playing.
Yat Siu, co-fouder and director of Animoca Brands says the acquisition will increase both companies' capabilities, especially in the blockchain realm.
"Our acquisition of Pixowl provides powerful strategic and operational synergies with Animoca Brands." Says Siu.
"Pixowl's experienced developers will significantly increase our development capabilities. It's founders are highly respected game industry veterans who have developed multimillion dollar franchises. We believe the blockchain version of The Sandbox has incredible potential. Pixowl shares our vision of blockchain gaming, NFT's and games as a platform."
Shares in Animoca Brands are down 3.53 per cent to $0.08 per share at 12.13pm AEST.
Business News Australia
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