Indian esports and gaming company NODWIN Gaming has announced that it will fully acquire German esports and gaming company Freaks 4U Gaming, in a deal valued at €30.3m (~£25.6m).
The transaction will go through in the near future, with NODWIN initially acquiring 57% of shares, with the rest of the shares changing ownership at a later time.
The acquisition comes after a period of uncertainty for the German company. Freaks 4U Chief Executive Officer, Michael Haenisch, shared via social media that the company is to undergo layoffs to ensure it can continue operations due to the challenging landscape of esports. The move was made despite Freaks 4U Gaming receiving €8m (~£6.85m) in investment from NODWIN Gaming in January 2024.
NODWIN Gaming has now expanded its investment into Freaks 4U Gaming through a share swap agreement valued at €30.3m (~£25.6m). The deal is to go through through tranches, with the first round increasing the NODWIN stake in the company from 13.51% to 57%.
The remainder of the shares will remain in possession of Freaks 4U Gaming founders Michael Haenisch, Matthias Remmert and Jens Enders before eventually being swapped at a later date. This will result in NODWIN Gaming acquiring the entirety of Freaks 4U stock, but the exact time frame was not announced.
CEO of Freaks 4U Gaming, Michael Haenisch, said: “We are thrilled to be joining forces with NODWIN Gaming to create a robust network and synergies unprecedented in our industry.
“Akshat is an incredible visionary and leader, our partnership has been quite the ride so far and we know the best has yet to come. With our shared vision and ambition, we look forward to driving our global expansion while spearheading innovation and growth for gaming and esports.”
The two companies did not share any details about whether the acquisition will affect the announced layoffs at Freaks 4U Gaming.
