LegalPCF Group
Current Report No. 13/2021: Acquisition of Phosphor Games Development Team
23 Apr 20211 pages~2 min full read
PCF Group S.A. acquired the Phosphor Games development team in Chicago, Illinois, to establish a permanent North American production presence.
The transaction, executed via subsidiary People Can Fly Chicago, LLC, resulted in the transition of 18 developers, including the three original founders of Phosphor Games.
The new studio officially commenced operations under the People Can Fly brand on May 1, 2021.
The acquisition included the transfer of the existing Chicago office lease to serve as the new studio's headquarters.
Employment terms for the transitioning staff were standardized to align with the parent company's global compensation and bonus structures.
The deal included founder-provided indemnification to protect the acquiring entity from liabilities related to the previous operations of Phosphor Games.
Financial backing for the expansion was facilitated through an internal loan provided by the parent company to its U.S. holding entity.
PCF Group S.A. expanded its international development capabilities through the strategic acquisition of the Phosphor Games development team in Chicago, Illinois. Executed via the subsidiary People Can Fly Chicago, LLC, the transaction involved the transition of eighteen developers, including the three original founders of the studio. This move establishes a permanent presence for the group in the Chicago market, with the new studio officially commencing operations under the People Can Fly brand on May 1, 2021.
The acquisition process utilized a structured legal framework to ensure a seamless transition of talent and assets. Each developer entered into separation agreements with the former entity while simultaneously signing confidentiality, non-solicitation, and non-compete agreements with the new employer. Employment offers were standardized to align with the parent company’s global compensation and bonus structures. Furthermore, the founders provided indemnification to protect the acquiring entity from potential third-party claims, tax liabilities, or employment obligations stemming from the previous operations of Phosphor Games.
Beyond the human capital, the agreement included the transfer of the existing office lease in Chicago to serve as the headquarters for the new studio. Financial backing for the expansion was secured through an internal loan provided by the parent company to its United States holding entity. This acquisition represents a targeted effort to bolster the group’s creative workforce in North America, integrating an established team of industry veterans into its global production pipeline.
