Nordisk Film, an Egmont division, and the other owners of IO Interactive, have sold the successful Danish company behind the Hitman and Freedom Fighters games to Eidos plc
The English company, Eidos plc, one of the world’s leading publishers and developers of entertainment software, has agreed to purchase the shares in IO Interactive, effective as of 31 March 2004. Nordisk Film, an Egmont division, had a 40.3% shareholding in IO Interactive. The other owners were executives, key employees and employee share plan beneficiaries of the company. IO Interactive, which catapulted Denmark firmly on the world map of the games industry, will remain based in Copenhagen after the sale.
The total consideration is £23 million (approx. DKK 256 million) in cash and Eidos stock. Egmont’s share hereof is approx. DKK 103 million in cash. In addition, a contingent payment of up to approx. DKK 56 million is linked to the future performance of IO Interactive. Egmont’s share hereof is approx. DKK 22 million.
Nordisk Film terms the deal a mark of global recognition for the company’s extraordinary efforts:
”IO Interactive has risen through the ranks to the super league of game development companies. IO Interactive’s efforts during the years are very impressive and we are proud to have assisted the company to the next rung of the ladder,” comments Kenneth D. Plummer, Managing Director of Nordisk Film and member of the Management Board of the Egmont Group.
In just five years, IO Interactive has established a position as Europe’s 10th largest game development company. It ranks number 24 on the list of Europe’s 500 fastest growing IT enterprises and has today 140 employees.
”The owners’ ambition has been for IO Interactive to play an even bigger role in an industry that is undergoing international consolidation into fewer but larger companies. It was logical, therefore, to further strengthen IO Interactive by moving closer to a global developer and publisher of electronic entertainment. Eidos will provide an excellent partnership for IO as it enters the global stage,” Plummer continues.
Eidos is a market leader in genres where IO Interactive develops games. Eidos has distributed and marketed the Hitman games as well as numerous world-famous titles such as Tomb Raider. Global sales of the latest Hitman game topped 3.0 million copies, with a new version due for release in April.
Commenting on the acquisition of IO Interactive, Mike McGarvey, CEO of Eidos, said:
“Eidos is extremely pleased to announce that it has reached agreement to acquire IO Interactive, the creative studio responsible for the development of the hugely successful Hitman franchise. We welcome their team of outstanding, technically creative developers, who we know share our vision and values. The relationship and experience we have already shared gives us great confidence in their ability to not only maintain the outstanding success of Hitman, but also to develop new titles of unique IP. In addition, their market leading technology will be a critical element in the Group’s transition to next generation platforms.”
Nordisk Film will continue to be active in the electronic games market through its cooperation with Sony PlayStation, whose products Nordisk Film has distributed and marketed in the Nordic region since 1995, and by investing in building up selected games and games development companies.
Kenneth D. Plummer elaborates:
“Nordisk Film will continue to be a hothouse and build bridges between talent, market expertise and strong universes. This includes electronic games. We cannot expect a new IO to emerge from one day to the next. Our ambition, however, is to make a difference in selected companies with growth potential that offer opportunities for synergies with Egmont’s other business areas. Nordisk Film is monitoring several companies and our initiatives to date include investing in Pinkfloor, a company that develops interactive universes for teenage girls.”
Further information is available from:
Kenneth D. Plummer, Managing Director, Nordisk Film, + 45 33 26 67 01, plummer@nordiskfilm.com
Eidos, Steve Starvis, Head of Communications, Eidos UK, +44 (0)20 8636 3239, steves@eidos.co.uk
Sascha Amarasinha, Vice President, Egmont Corporate Communications, +45 33 30 51 40, sas@egmont.com
Line Bundgaard, PR Coordinator, IO Interactive, +45 3373 2900, lb@ioi.dk
NORDISK FILM is a company in the Egmont Group and a leader in the development, production and distribution of moving images in the Nordic countries. The company’s activities include films, feature animations, commercials, music videos, videos, DVDs, TV and electronic games. NORDISK FILM holds the Nordic distribution rights for Sony PlayStation and owns cinemas in Denmark and Norway. NORDISK FILM also owns post-production companies, film laboratories and broadcast rental companies. In 2002, NORDISK FILM generated revenues of EUR 432 million and employs a staff of 1,152.