Devolver Digital Acquires System Era Softworks

Devolver Digital has expanded its portfolio by acquiring System Era Softworks, marking the studio as the publisher’s seventh subsidiary. The transaction involves an initial consideration of $22 million, with a total potential valuation of up to $40 million, payable through a combination of cash and shares. This strategic move is designed to diversify Devolver Digital’s operations beyond its traditional focus on premium indie titles by integrating System Era’s specialized expertise in live operations and the development of long-term, expandable game projects.

The acquisition centers on System Era’s flagship title, Astroneer, a sandbox space adventure game that has achieved significant commercial success since its 2016 launch. The game has reached a player base of over 13 million users and generated more than $87 million in lifetime revenue. Financial performance data for the 12-month period ending June 30, 2023, indicates that System Era generated $7 million in revenue with an EBITDA of $3.8 million.

The studio, which maintains a workforce of 50 employees, will retain its existing leadership and core team following the acquisition. This integration aligns with Devolver Digital’s broader growth strategy, which has seen the company acquire several other developers since 2020, including Croteam, Good Shepherd Entertainment, FireFly Studios, Nerial, Dodge Roll, and Doinksoft. The partnership aims to provide System Era with the resources of a larger organization while allowing the studio to continue its established development practices under the Devolver banner.