Worms creator Team17 has acquired Irish educational app developer StoryToys for an initial $26.5 million. The UK company said the purchase, made via the acquisition of StoryToys' parent company TouchPress Inc, will help it make inroads into the 'edutainment' market.
The deal will see Team17 offer an initial consideration of $26.5 million alongside a further $22.5 million in cash if StoryToys meets certain performance targets over the next three years.
Founded in 2011, StoryToys has created a number of edutainment apps in partnership with brands like The Lego Group, Disney, Pixar, Hasbro, Warner Bros, and Nickelodeon.
The company has amassed over 100 million downloads across its entire app portfolio, and will continue to be led by its current management team following the acquisition.
Team17 noted the demand for educational entertainment apps has accelerated due to the COVID-19 pandemic, and said the market is forecasted to grow by over $46 billion between 2020 and 2024. In a bid to ride that wave, Team17 hopes to turn StoryToys into the "global number one children's edutainment brand for ages 8 and under."
"I am thrilled to be welcoming StoryToys into the Team17 family and believe our shared culture and values perfectly align. In StoryToys, we are acquiring a highly creative and successful team whose ability to both entertain and educate children is truly best in class," said Team17 chief exec Debbie Bestwick.
"Their track record is without question but the depth of talent that exists within the business gives us an unrivaled position within a hugely exciting and high growth edutainment area. We look forward to working closely with the whole StoryToys team and are delighted to be able to not only support their ambitious growth prospects but to provide a strong and stable platform to accelerate their development."