PKF Advises Team17 on $26.5m Acquisition of StoryToys
Team 17 has acquired StoryToys, a world-class developer and publisher of educational entertainment apps for children, in a deal supported by PKF.
London-listed Team17 Group plc is a global games entertainment label, creative partner and developer of indie premium video games, headquartered in Wakefield, West Yorkshire. Founded in 1990 and led by CEO Debbie Bestwick, Team17’s best-known titles include the Worms franchise, The Escapists and Overcooked.
Founded in 2011 and based in Ireland, StoryToys is a leading developer of educational apps, targeting the pre-school market of children aged two to seven years old. StoryToys apps have been downloaded over 100 million times across 120 countries, and its educational entertainment – or edutainment – apps are produced in 28 languages.
The PKF team led by David Lucas in Dublin and Sam Phillips in Bristol conducted financial due diligence for Team17 on the acquisition of StoryToys’ parent company TouchPress Inc for an initial consideration of US$26.5 million.
Mark Crawford, chief financial officer of Team17, said: “We were very happy with the support received from PKF through Team17’s acquisition of StoryToys. The PKF team was put together very quickly and undertook the thorough financial due diligence review at pace and assisted us by mobilising teams in various locations to enable us to complete the deal. We were pleased with the service provided and the way in which they worked with the internal team at Team17 and with the StoryToys team.”
David Lucas, corporate finance partner at PKF O’Connor Leddy Holmes, said: “We were delighted to support Team17 on this transaction, utilising the combined resources of the PKF International network working from both O’Connor, Leddy & Holmes in Dublin and Francis Clark in Bristol. We’d like to wish Debbie, Mark and the team continued success as the business grows from strength to strength.”
Sam Phillips, transaction services director at PKF Francis Clark, said: “The acquisition of StoryToys strengthens Team17’s position as a leading global games label through its entry into the fast-growing edutainment segment of the market. It was a pleasure to lead the cross-border PKF team alongside David Lucas on another quality transaction. Advising Team17 on this exciting deal also brought back happy memories of many hours playing Worms in my younger days, and we look forward to seeing the enlarged business continue to thrive.”
The acquisition establishes a new highly complementary and fast-growing edutainment vertical for Team17, strengthening the enlarged group’s position as a leading games entertainment business.
Supported by Team17, the ambition is to grow StoryToys to be the global number one children’s edutainment brand for ages eight and under.
Emmet O’Neill, CEO of StoryToys, said: “Team17 is the perfect home for StoryToys as we enter into this incredible new chapter. Our goal is to be the number one provider of edutainment content for young children. Collaborating with Team17 will make that a faster and more exciting journey. We believe in creating the best possible digital learning experiences for children. We look forward to the possibilities that are opened up by collaborating with what we believe to be the best partner to deliver our ambitions.”
PKF International is a global network of accountancy firms with 220 members in 150 countries. With more than 20,000 professionals united under the PKF brand worldwide, the network is at the forefront of compliance regulations and specialises in providing high-quality audit, accounting, tax and business advisory solutions to both national and international organisations. More information can be found at pkf.com.
Team17 is a global games entertainment label and creative partner for independent (“indie”) developers, focused on the premium, rather than free to play market, and creating games for the PC, console, mobile and tablet gaming markets.
Alongside developing the Company’s own games in house, Team17 also partners with independent developers across the globe to add value to their games in all areas of development and production and in bringing them to market across multiple platforms for fixed percentage royalties.
Since its foundation in 1990, the Company has launched over 100 games, including the iconic Worms, Overcooked! and Escapists franchises, Yooka-Laylee, Yoku’s Island Express, My Time at Portia, Hell Let Loose, Blasphemous, Golf With Your Friends, Neon Abyss and Moving Out making Team17 one of the most prolific developers and diverse partners of games for the indie market.
Founded in 2011, StoryToys is a multi-award-winning, leading player in edutainment apps for children under the age of eight and has produced apps with many leading children’s brands, including The LEGO® Group, Disney, Pixar, Penguin, Sesame Workshop, Dick Bruna, Warner Bros, Hasbro, and Nickelodeon
With over 100 million app downloads, StoryToys has been the recipient of numerous awards for the quality of its products, including Kidscreen Award Winner 2021, Licensing International Excellence Awards Winner 2020, KAPi Awards Winner 2020, numerous Children’s Technology Review Editor’s Choice Awards, and multiple Bologna Ragazzi Digital Awards