Fragbite Group AB (publ) ("Fragbite Group" or "the Company") has today signed an agreement to divest all its shares in subsidiary Playdigious SAS ("the Divestment") for a consideration of EUR 10.5 million, corresponding to approximately SEK 115 million, on a cash-free, debt-free basis. The net consideration is paid in cash. In addition, Fragbite Group obtains 90 percent of the net revenue from current PC games under business unit Playdigious Originals moving forward. The signing of the agreement today also marks the closing of the transaction. The buyer is international venture fund Griffin Gaming Partners. Playdigious has since it was acquired in 2021 been a successful investment for the Company, and the Divestment enables Fragbite Group to secure a strong capital position and support new strategic initiatives.
TERMS OF THE DIVESTMENT
- Divestment of all shares in French subsidiary Playdigious SAS ("Playdigious"), including all Playdigious' assets and all game publishing rights, to international venture fund Griffin Gaming Partners ("the Buyer").
- Fragbite Group obtains 90 percent of net revenue generated moving forward from PC games currently under publishing contract with business unit Playdigious Originals ("the PC Games"). The PC Games comprise titles Fretless - The Wrath of Riffson, Crown Gambit, Linkito and The Almost Gone.
- The consideration is EUR 10.5 million, corresponding to approximately SEK 115 million, on a cash-free, debt-free basis. The Net consideration will be paid in cash.
- The day of signing also constitutes the closing of the transaction.
- The Buyer is taking out a warranty and indemnity insurance policy as primary recourse for claims under the business warranties given in relation to the Divestment.
"Playdigious was acquired in 2021 and has been a successful investment. We now got the opportunity to divest the subsidiary in a favourable deal that allows us to secure a strong capital position, evolve Fragbite Group further and support new strategic initiatives such as the Bitcoin Treasury initiative. Fragbite Group's close ties to Playdigious, with founders Xavier Liard and Romain Tisserand and CEO Abrial Da Costa, are strong and our collaboration continues. We have always been very proud of the Playdigious team, and I want to thank all team members for being such a positive part of the group these years. I believe Playdigious will continue to grow together with the highly knowledgeable team at Griffin Gaming Partners and wish them the best of luck in future endeavours," says Stefan Tengvall, CEO, Fragbite Group.
BACKGROUND AND MOTIVE
Playdigious is a French game development studio that was founded in 2015 by Xavier Liard and Romain Tisserand. Playdigious was acquired in May 2021 by Fragbite Group for a consideration of EUR 3 million in cash and EUR 2 million in shares in the Company. Over the following three years Playdigious reached all its financial goals, rendering the full payment of additional earnouts totalling EUR 1.75 million in cash and EUR 1.75 million in shares. The Playdigious investment has since 2021 been successful with a more than satisfactory total rate of return.
Playdigious' core business model is licensing IPs for already published PC and console games, porting them to mobile and in most instances also publishing them on mobile. In 2023 a smaller business unit for publishing original games to PC was launched under the label Playdigious Originals.
Fragbite Group has for over a year evaluated various options for selling assets, in whole or in part, in order to deliver on our commitment to the shareholders to improve our capital position, create a stronger capital structure as well as secure a long-term positive cash flow across the group. The sale of Playdigious proved the most advantageous as the Company was able to secure a significant cash consideration as well as obtain some future revenue from Playdigious' IP portfolio to boost the remaining smaller Gaming business area. The Divestment enables the Company to meet our goals and commitments and allows Fragbite Group to move forward with new strategic initiatives for growth and development, notably in the FunRock business unit for hybrid work-for hire and in business area Bitcoin Treasury, increasing our BTC holding.
IMPACT ON FRAGBITE GROUP
- Playdigious has been Fragbite Group's largest subsidiary, representing 77 percent of the revenue in 2024, and as such Playdigious has historically contributed significantly towards the costs of the parent company. The Company will keep some funds in cash or cash equivalents until such time that the remaining core operations and investments generate enough recurring revenue and yield to comfortably sustain the parent company and ensure an overall positive group cash flow. It is the Company's expectation that the group in its new form will be self-sustaining within 6-12 months.
- The book value of Playdigious in the parent company's balance sheet at the time of the Divestment was SEK 97.1 million. The book value of goodwill in the consolidated group balance sheet was SEK 12.2 million. The divestment of Playdigious will imply a capital gain in both the parent company's income statement and the consolidated group income statement.
- As consequence of Playdigious no longer being part of the consolidated group balance sheet, the Divestment will imply a reduction of interest-bearing borrowings and other financial liabilities on the consolidated group balance sheet of EUR 1.08 million in total.
- In the upcoming interim report for the third quarter 2025 the Company will further outline the financial outcome and impact of the Divestment.
- Business area Gaming becomes significantly smaller in revenue without Playdigious, after the Divestment the business area consists of FunRock's two business units. The Divestment however has limited effect on the strategy for the Gaming business area which relies on decentralisation and focus on IP-rights, something which will remain. There are no material changes to business areas Esports and Bitcoin Treasury as a direct result of the Divestment.
- The sale of Playdigious has a significant impact on the ongoing strategic review. The finalisation of the Divestment allows the Company to also finalise the new strategic platform and adopt new financial targets, something which the Company intends to communicate shortly.
ADVISORS
Agora Gaming Partners has acted as the Company's sell-side advisor. Wiggin law firm has been the Company's counsel and legal advisor. Lexprime has been the Company's legal advisor in France.
For questions, please contact:
Erika Mattsson, Chief Communications Officer
ir@fragbitegroup.com
Phone: +46 8 520 277 82
Redeye AB is the Company's Certified Adviser.
About us
Fragbite Group (publ) is a Swedish corporate group with a portfolio of established subsidiaries that develop, adapt and publish games and esports content within GAMING, ESPORTS and WEB3. Our products are developed for both traditional platforms - PC, mobile and console - and modern platforms built on blockchain technology. The Group is headquartered in Stockholm and listed on Nasdaq First North Growth Market.
This information is information that Fragbite Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-10-08 00:59 CEST.
