This will make it the largest pure gaming development company on the Australian Stock Exchange (ASX) and also in Australia and SEA.
With more than 450 employees, the acquisition is expected to generate no less than A $ 17 million ($ 12.36 million or Rs 51.5 million) annually.
Design and development of internal games
As an update, iCandy’s core business is game development, game publishing, and e-sports, with its titles played by more than 360 million mobile gamers worldwide.
Lemon Sky is a CGI art and animation studio that offers outsourced services to clients such as Microsoft Studios, EA Entertainment, Disney and Nickelodeon.
In November 2020, it was announced that Lemon Sky and iCandy were collaborating to create a new gaming company for AAA mobile games.
ICandy COO Desmond Lee told Vulcan Post that the new company, called Sky Candy, is now an independent studio and focuses on AAA mobile games.
While iCandy is known for releasing mobile gaming titles, Desmond told us that the acquisition of Lemon Sky will bring the additional expansion of iCandy into the console and computer space.
Prior to that, iCandy had not outsourced any Lemon Sky art and animation services to its mobile games. But the team has recognized Lemon Sky’s strengths through its animation work for AAA game titles like Overwatch 2, Call of Duty: Infinite Warfare, and SimCity, so this acquisition speaks for itself, according to Desmond.
“Collaborative partnerships in the creative industry are relevant to keeping things new and innovative. We are confident that this merger will encourage creative working methods and generate new ideas,” said Cheng-Fei Wong, CEO of Lemon Sky.
However, Desmond clarified that there will be no change of leadership after this acquisition and that Lemon Sky will continue its outsourcing work.
In the metavers
Aside from the increase in manpower, revenue and capabilities, both teams are confident that this acquisition will help the group drive the construction of the extended metavers.
Did you know: Metavers is a digital reality that combines aspects of social media, online gaming, augmented reality (AR), virtual reality (VR), and cryptocurrencies to allow users to interact virtually.
This will be done through the regional expansion plans of both companies in the development of casual and AAA games in the blockchain for open metavers.
Although Desmond was unable to share any teaser about what they have reserved for running it, he told us that there are already some plans underway.
After all, the development of the open metaverse is still in its nascent stages of conceptualization and leaves much room for exploration.
“While our current focus is on the gaming community within this rapidly expanding new space, we have our vision to go beyond that as far as opportunities present themselves,” Desmond shared.
A huge valuation for the acquisition
According to iCandy’s Press release, this acquisition will have a valuation of A $ 44.5 million (US $ 32.4 million or Rs 135 million). It is expected to be met along with cash and newly issued iCandy shares.
In parallel with the merger, iCandy has raised $ 40 million ($ 29.1 million or $ 121.2 million) from institutional investors through a placement that is oversubscribed (where there is a demand for shares above the actual offer).
The funding round was led by another gaming company investing in the metavers, Animoca brands, a world leader in gamification technology and blockchain games.
Animoca Brands also has a portfolio of more than 100 investments in NFT-related companies and decentralized projects that help build the open metavers, so we’re likely to see interesting projects emerging from iCandy’s Lemon Sky acquisition soon.
Featured Image Credit: Lemon Sky Studios