In a rather shocking announcement, Kunos Simulazioni has announced that the studio will be acquired by Digital Bros, for 4.3 Million Euros (approximately $4.58 million). Digital Bros is also the parent company of 505 Games, who developed the console versions of Assetto Corsa. The agreement will see Digital Bros featuring a 100% ownership stake of the Italian company.
Not much is known about the change of ownership, but it is confirmed that Stefano Casillo and Marco Massarutto will still stay onboard with the studio, and oversee development.
For more information, you can check out the press release below. It is translated via Google, and I made a few modifications to try to make it a little easier to read.
The Board of Directors of Digital Bros, listed on the Star segment of the Italian Stock Exchange and active in the field of digital entertainment, which met today, approved the signing of an investment agreement concerning the acquisition of 100% of the share capital of Kunos, Italian developer of Simulations , Assetto Corsa S.r.l. In the same session were also beneficiaries of options discovered “2016-2026” stock option plan (the “plan”), recently approved by the shareholders, the quantities of options granted, and the unit price of subscription.
Kunos Simulazioni S.r.l. is an Italian company based in Formello (RM) who has many years of experience at the forefront of implementation of the main Italian carmakers simulators. Following this experience they developed and launched Assetto Corsa in 2014, a video game which was a great success with critics and audiences in versions for the Sony PlayStation 4 and Microsoft Xbox One, PC (Steam),with more than 1.4million copies sold worldwide to date. 505 Games, the Division of Digital Bros that deals with international publishing of video games, has signed an agreement during the 2015 Edition of the console versions. Assetto Corsa offers players 150 cars, reproduced in every aspect, from the automotive world’s leading brands such as Alfa Romeo, Audi, BMW, Ferrari, Porsche and many more. Thanks to the use of Laser Scan technology, every single detail of the most famous tracks in the world has been reproduced with the utmost level of accuracy, making the game a real sporty driving simulation. With this acquisition, the Digital Bros Group intends to grow more and more as a Publisher and developer of games that will be successful in the world and be always ready to meet the needs of an increasingly demanding public. The acquisition allows full control of intellectual property and the opportunity for the group to invest on future developments of new versions of Assetto Corsa, benefiting from a brand extremely well located in the global market for video games. The fact that the group already holds the rights of publication of Assetto Corsa for the console version also synergies in terms of brand positioning and optimization of advertising at a time when the rights are to be held entirely by the group. The operation involves the acquisition of 100% of Digital Bros S.p.A. company Kunos Simulazioni S.r.l., held by two founders Stefano Casillo and Marco Massarutto via joint for a nominal price totaling 4,341,500 Euro that will be paid as follows:
1,375,000 Euro will be paid in cash within one year from the date of execution;
1,591,500 Euro by via issuing 150,000 shares of Digital Bros stock, at a unit price of 10.61 Euros, equal to the arithmetic average of quotation prices of Digital Bros shares over the past six months.The issue is subject to approval by the shareholders’ meeting to be convened for next March 13.
In the absence of financial data of the Kunos Simulazioni S.r.l. at December 31, 2016, pricing was made assuming net worth at the same date amounted to 10,000 Euros, any variations from this value will increase or decrease of the second installment of cash payment. Kunos Simulazioni S.r.l. has accomplished over the year to December 31, 2015, latest financial statements available, revenues of 3.3 million and a net profit of 1.7 million euros. Shareholders equity at December 31, 2015 was $3.1million. No particular form of financing has been provided for the operation that will be financed through existing credit lines and whose execution date is expected before the end of April 30, 2017. The agreement is binding on the parties and subject to condition precedent to effect any significant relief that will emerge from the due diligence process that will be put in place as soon as the financials to December 31, 2016 will be available and positive resolution of the shareholders of Digital Bros. The shares that will be issued in favor of two associates salespeople will be fully available at the time the Board of Directors of Digital Bros has completed the formalities”
Who are Digital Bros?
On 30th June 2016, the Group registered gross revenues for € 110,2 million and a growth in Net Profit, to 12,5 million from 9.1 million at 30th June 2015.
Founded in 1989 in Milan, Italy by Rami and Raffaele Galante and listed on the STAR segment of the Italian Stock Exchange since 2000, today Digital Bros is a global company combining technological evolutions with consumer habits and tastes.
Creative excellence, innovation, efficiency and coverage of any distribution channel are the key characteristics of Digital Bros’ activity. Today the majority of the revenues are derived from the International Activity 82% and for 49% from the digital business.