THQ Nordic, the Austrian publisher behind titles such as Darksiders and This is the Police, issued 11 million new class B shares Wednesday night in an effort to raise money for new acquisitions. The new shares were all bought quickly by investors, raking in around 2.09 Swedish krona ($225 million USD).
Among the bigger buyers were several large mutual fund managers, many of whom were new investors for the company.
In statements made to GamesIndustry.biz, the money from the new shares will be spent on acquiring new game franchises, studios, and "other assets which complement the operations" of the company. According to THQ Nordic's CEO, Lars Wingefors, the company plans to finance its growth through cash flow from consumer purchases and investors. This is to avoid relying on debt from loans and bonds, which Wingefors considers to be less safe in the long run, and worse for company partners and employees.
Wingefors also said that the company plans to keep growing into the future. THQ Nordic's strategy at the moment is to "build something substantial, diversified and evergreen through acquisitions and substantial organic development growth." The CEO added, "we have a long way to go until we reach the next level."
This plan of action is nothing new for the Austrian company. Over the past few years, THQ Nordic has been growing rapidly and acquiring many IP and studios. Although they started with holdings from the previous THQ, which was an American video game developer, THQ Nordic has since spread their acquisitions to a wide variety of firms.
For example, last year THQ Nordic acquired 20 different IP and studios, including the Dead Island and Saint's Row IP; Bugbear Entertainment, winner of multiple awards for racing and sports games; Alone in the Dark; Kingdoms of Amalur; HandyGames, the developer behind Townsmen and Luftwaffe, and, most importantly, Goat Simulator.
The company has also been busy in 2019. Although we're only two months into the new year, THQ Nordic has already acquired the Outcast IP from Appeal Studios, Australian studio 18Point2, and Warhorse Studios.
With the massive success of their new stock issue and their 713% increase in net sales over 2018, things are looking up for THQ Nordic. Hopefully, gamers can look forward to new releases from the company's acquisitions that successfully carry on the legacy of content their players have come to know and love. Especially Goat Simulator.