Starbreeze AB, a Swedish independent creator, publisher and distributor of entertainment products, has agreed to acquire Valhalla, a next generation game engine under development with its related technology and tools. The acquisition is to be paid for with approx. 3.3 million shares (before the suggested A/B split and 1:2 issue of new A-shares) equivalent to approx. 73 MSEK, or a total US stock value of $8.5M, at current share price and corresponding to approx. 2,25% of the share capital post acquisition. The acquisition is subject to approval by an EGM on June 12, 2015.
Valhalla represents the next generation with a true browser based AAA game engine. Valhalla’s graphic cloud engine will revolutionize the art pipeline by providing an integrated development environment for rapid and creative game development across multiple studios and teams. Valhalla supports not only 3D but is fully virtual reality (VR) ready, and proofed on several headsets currently on the market. Starbreeze intends to use the Valhalla engine in OVERKILL’s The Walking Dead and Storm, as well as in other future games and applications.
“By acquiring Valhalla we gain access to a powerful future proofed engine and production pipeline. This will gear us up to take on the challenges and opportunities in future game development. In essence, we leapfrog the build out of a new first class development environment several years and increase our commitment as a technology company,” says Starbreeze CEO Bo Andersson Klint.
Valhalla has been developed independently for four years by highly experienced and accomplished game and visualization technology experts. The leading Valhalla architects have joined Starbreeze to secure the transfer of technology and the continued development of the engine.
In PAYDAY 2, Starbreeze uses the game engine Diesel 2.0. The engine was originally developed by GRIN and first used in the 2001 premiered game Ballistics. Diesel 2.0 will be maintained for the continued development of PAYDAY 2, RAID: World War II and other products, whereas Valhalla will continue to enable sustained independence for next generation products, and take Starbreeze to a new level of high quality graphics and productivity.
Since one of the owners has been employed by Starbreeze since November 2014, the acquisition requires approval by 90 per cent of a general meeting, according to the Swedish Leo rules. Therefore, the Board calls an extra shareholder’s meeting on June 12, 2015. A notice will be published separately.
“Investing in a major technology leap like this is of outmost importance for our aggressive taking of market share. Acquiring technology, know-how and brands is in our expansion strategy and after a long collaboration we are convinced this will be a massive value add to the company long term.” said Michael Hjorth, Starbreeze Chairman.