Singapore and London listed Winking Studios announced that it is acquiring Shanghai Mineloader Digital Technology, one of Asia’s leading game art outsourcing and development studios for a consideration of RMB 146 million ($27.2 million).
The group will be funding this acquisition with its internal cash resources. The group will be paying upfont RMB 131.4 million, with the balance to be paid on the fifth anniversary following completion of the proposed acquisition, subject to the satisfaction of certain conditions and performance targets.
With its business roots tracing back to 2003 when Shanghai Mineloader Digital Technology established its first studio, Mineloader is currently headquartered in Shanghai and has developed integrated capabilities across three major gaming platforms and expanded its workforce to 466 employees (as at Nov 30, 2024) across three studios in Asia.
In its latest full audited period, Mineloader delivered Ebitda of approximately $3.6 million for the FY2023 ended December 2023. The majority of Mineloader’s revenue is generated from game art outsourcing services (an average of approximately 90% for FY2022 and FY2023) and its strength in console platform games can provide more revenue diversity for the group.
With a reputable track record within the global gaming services industry, Mineloader has established enduring working relationships with blue-chip gaming clients globally, gaining more traction in Western markets in recent years.
Mineloader is spearheaded by industry veterans with extensive past experience at renowned Japanese gaming companies, who will continue to lead the business while benefitting from the group’s central resources and expertise. The acquisition is expected to deliver increased scale across Asia, new Western clients and increased resources to deliver on the group’s global ambitions
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The completion of the acquisition is subject to certain conditions precedent, which are expected to be satisfied before the end of the 2Q2025.
Johnny Jan, executive director, CEO and founder of Winking Studios says: “This marks our largest acquisition to date and represents a pivotal step that augments our position in the global video games industry, unlocking new horizons for growth and innovation.”
“Together with a reputable track record and a speciality in game art production, Mineloader’s team of more than 460 employees will be a valuable addition to our group’s existing headcount of over 800, boosting our service offerings in this segment and adding new clients. Mineloader’s established experience and presence in the Japanese market is also a notable value add to our group’s business networks.”
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“Driven by our global ambitions, we will continue to proactively explore new M&A opportunities to enhance our value propositions across the value chain of the global gaming services industry, delivering cost-effective solutions for our Western and Asian gaming clients in different market segments.”
As at 3.35pm, shares in Winking are trading at 31 cents.
