StoryToys, a Dublin-based developer and publisher of educational children’s entertainment applications, was sold to UK group Team17 for $ 26.5 million (â¬ 22.4 million).
A maximum additional amount of $ 22.5 million (â¬ 19 million) will be payable in cash upon delivery of certain targets by StoryToys within three years of closing the deal, according to a statement from Team17.
Founded in 2011, StoryToys is a multi-award winning educational entertainment application for children under the age of eight.
The company has produced apps with many top brands for kids, including The LEGO Group, Disney, Pixar, Penguin, Sesame Workshop, Warner Bros, Hasbro, and Nickelodeon.
Its apps have been downloaded over 100 million times in 120 countries and its products are available in 28 different languages.
StoryToys generates revenue from its apps through subscriptions, in-app purchases, and paid apps.
Its entire team will join Team17 as part of the acquisition.
Emmet O’Neill, CEO of StoryToys, said, âTeam17 is the perfect home for StoryToys as we enter this incredible new chapter. “
âOur goal is to be the leading provider of edutainment content for young children. Working with Team17 will make this trip faster and more exciting, âhe added.
UK-based Team17 is a global independent (“indie”) game entertainment label and video game developer.
The acquisition is being made through StoryToys’ parent company, TouchPress, and will be funded from Team17’s existing cash reserves.
The company said the purchase of StoryToys “will expand Team17’s existing skills and reach for its customers.”
StoryToys is “profitable and growing and should immediately generate profits,” Team17 said.
He added that the deal will provide opportunities for cross-collaboration between Team17 and StoryToys, such as writers, artists, musicians, programmers, editors and designers, in addition to sales and marketing.
Patrick O’Donnell, Analyst at Goodbody, said, âThe acquisition of StoryToys establishes a new, complementary and growing edutainment vertical for Team17. “
“Comment in the declaration [from Team17] indicates that the acquisition is expected to immediately generate profits and generate margins and cash generation approaching Team17 levels. “