Starbreeze to acquire 90.5% stake in Indian game developer Dhruva Interactive
Swedish video game development studio and publisher Starbreeze has agreed to buy a majority stake of 90.5% in Indian game developer Dhruva Interactive for US$ 8.5 million.
The transaction will see Starbreeze pay US$ 7.0 million in cash and the remaining amount of US$ 1.5 million by issuing its new Starbreeze B-shares.
Starbreeze will fulfill its art production requirements for its gaming projects that include Nozon’s VFX production and OVERKILL’s The Walking Dead through the acquisition of the Indian gaming company. Besides the Swedish game developer will also be in a position to enhance the quality of its in-house production of gaming projects and cut down on operating costs.
The Swedish gaming company says that by Dhruva Interactive’s acquisition, it will be able to deliver full end to end services to its participating publishing partners while also adding a considerable value to its VR ecosystem.
Starbreeze CEO Bo Andersson-Klint said: “Bold plans need the right partners and Content is King. We have worked with Dhruva Interactive for several years and know them well. I am confident that bringing Dhruva into the Starbreeze family will strengthen Starbreeze as a global entertainment company.
Post acquisition, Dhruva Interactive will retain its operations and brand to service its clients in the gaming industry worldwide like before.
Andersson-Klint added: “Dhruva will continue to operate independently under its own brand and run business as usual with existing partners, while greatly contributing to Starbreeze pipeline and adding pronounced value to our publishing services and VR ecosystem.”
Dhruva Interactive, founded in 1997, has more than 320 employees with two studios in Bangalore and one in Dehradun.
The Indian gaming development company has been associated with various AAA-titles that include Halo 5, Quantum Break, Sea of Thieves, Days Gone and Forza Horizon 3.
Dhruva CEO and Founder Rajesh Rao said: “Starbreeze has been a great client, and over time we realized that Starbreeze is exactly the kind of company that we’d like to evolve with. They have strong games, an awesome vision for VR, similar culture and a skilled management team.
“Our talent art teams contribute to the some of the biggest and most visually stunning games in the industry today. As part of the Starbreeze family, we will be able to add cutting edge VR content to our repertoire as well. It’s an extremely exciting time.”
Dhruva Interactive has also delivered the major portion of the art asset production for the Overkill Software’s cooperative first-person shooter video game which was published by 505 Games.
The Indian gaming company had net revenue of US$ 4.6 million in the financial year ending March 2016.