The acquisition is part of Thunderful’s plans to expand its games development and publishing capacity, creating a new investment pillar.
The new investment arm, Thunderful Investment, will establish two new funds to be managed by Robot Teddy. One fund will focus on independent creators, whereas the other will support VR development and publishing.
The acquisition deal consists of an initial $9.6 million (£7 million) cash consideration, coupled with a further $4.1 million (£3 million) in shares to reinvest in Thunderful Group.
Additionally, if financial targets are continued to be met annually until December 31st, 2025, additional earn-out components of a maximum of approximately $16.5 million (£12 million) will be paid out.
“I’m delighted to be joining Thunderful. Having them believe in our vision and goals, and understand the path we want to forge for self-published devs in the industry, is rare and wonderful,” said Robot Teddy founder Callum Underwood.
“They’re giving us the support we need to develop and implement long-term plans that just wouldn’t be possible otherwise. We get to manage our own funds, we get to still work with all our clients, and we still get to be Robot Teddy.”
Following the acquisition, Robot Teddy will continue to provide consultancy and support services to its current portfolio, including Gang Beasts developer Boneloaf, Among US devs Innersloth and Superhot. Furthermore, the Robot Teddy is also co-developing Viewfinder, a new title from Fern Turtle.
Thunderful Group CEO Brjánn Sigurgeirsson added: “The acquisition of Robot Teddy supports our strategy to grow our games segment with ‘Thunderful Investment’.”
“Robot Teddy and its founder Callum Underwood have established a well-earned reputation for their work in the industry. They are exceptionally well-connected and keep their ears to the ground. Along with everything else they do, they will help us invest in superior games and studios.”
Recently, Thunderful Games head of publishing Dieter Scholler joined us at PGC Digital #8 on a panel of industry publishing professionals to discuss how to approach conflict with publishers.