iCandy acquires Lemon Sky to build AAA games & metaverse

In the latest news, iCandy Interactive (iCandy) announced that it will acquire 100% of Lemon Sky Studios (Lemon Sky) to scale up its existing capabilities.

This will make it the largest pure-play game development company on the Australian Stock Exchange (ASX), as well as in Australia and SEA.

With more than 450 employees, the acquisition is expected to generate no less than AU $ 17 million (US $ 12.36 million or RM 51.5 million) in revenue per year.

In-house game design and development

As a reminder, 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 provides outsourced services to clients including Microsoft Studios, EA Entertainment, Disney and Nickelodeon.

Titles Lemon Sky Worked On / Image Credit: Lemon Sky Studios

In November 2020, it was announced that Lemon Sky and iCandy were working together to create a new games company for AAA mobile games.

ICandy’s COO Desmond Lee told Vulcan Post that the new company, called Sky Candy, is now an independent studio and is focused on AAA mobile games.

While iCandy is known to release mobile game titles, Desmond told us that the acquisition of Lemon Sky will bring iCandy further expansion into the console and PC space.

ICandy Headlines / Image Credit: iCandy Interactive

Prior to that, iCandy had not contracted out any art and animation services to Lemon Sky for its mobile games. But the team recognized Lemon Sky’s strengths through their animation work for AAA game titles such as 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 fresh and innovative. We are convinced that this merger will encourage creative ways of working and bring new ideas, ”said Cheng-Fei Wong, CEO of Lemon Sky.

However, Desmond has clarified that there will be no change in management following this acquisition, and Lemon Sky will continue its outsourcing work.

In the metaverse

In addition to increasing headcount, revenue and capacity, both teams are confident that this acquisition will help the group move forward in building the extended metaverse.

Did you know: The metaverse 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 two companies’ regional expansion plans in the development of casual and AAA games on the blockchain for the open metaverse.

While Desmond wasn’t able to share any teasers on what they have in store to execute this, he did tell us that there were a few plans underway already.

After all, the development of the Open Metaverse is still in its infancy of conceptualization and leaves a lot of room to explore.

“While our current focus is on the gaming community within this new and rapidly expanding space, we intend to go beyond where the opportunities present themselves,” Desmond explained.

A colossal valuation for the acquisition

According to iCandy’s press release, this acquisition will be valued at AU $ 44.5 million (US $ 32.4 million or RM 135 million). It should be filled with cash and newly issued iCandy shares.

Along with the merger, iCandy raised AU $ 40 million (US $ 29.1 million or RM 121.2 million) from institutional investors via an oversubscribed placement (where demand for shares is higher than ‘actual offer).

The roundtable was led by another games company investing in the metaverse, Animoca Brands, a global leader in gamification technology and blockchain games.

Animoca Brands also has a portfolio of over 100 investments in NFT-related companies and decentralized projects contributing to the construction of the open metaverse, so it is likely that we will soon see some interesting projects emerge from the acquisition of Lemon Sky by iCandy. .

  • You can read more about iCandy Interactive here and Lemon Sky Studios here.

Featured Image Credit: Lemon Sky Studios

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