THQ Nordic AB Acquires Milestone s.r.l.: Investor Presentation

THQ Nordic AB finalized the acquisition of the Italian game developer Milestone s.r.l. on August 14, 2019, to bolster its position in the global racing simulation market. The transaction involved an upfront purchase price of EUR 55.8 million, consisting of EUR 44.3 million in cash and EUR 11.5 million in THQ Nordic B-shares, with an additional earn-out provision based on future adjusted EBIT performance through fiscal year 2022. This strategic move aims to leverage Milestone’s specialized expertise in two-wheel racing titles and its established portfolio of licensed and original intellectual property.

Milestone, founded in 1994 and based in Milan, brings a workforce of approximately 200 employees and a history of developing 50 games, having sold 8 million units since 2013. The studio is recognized for its technical proficiency in racing simulations, including the MotoGP, MXGP, Monster Energy Supercross, and RIDE franchises. The acquisition provides THQ Nordic with a robust development pipeline, featuring ten planned titles scheduled for release between fiscal years 2020 and 2022.

Financially, the acquisition is designed to capitalize on Milestone’s recurring revenue model, which is supported by consistent yearly or bi-yearly releases and a growing digital sales mix. For the fiscal year 2019, Milestone reported net revenues of EUR 28.2 million and an EBIT margin of approximately 33%. By integrating Milestone’s development capabilities, distribution networks, and marketing know-how, THQ Nordic intends to realize operational synergies and expand its presence in the racing genre, particularly within the evolving eSports landscape. The deal reflects a broader effort to secure high-performing, specialized development studios to drive long-term growth across major gaming platforms.