Focus Entertainment Expands Portfolio with Acquisition of Dovetail Games

In a significant move, Focus Entertainment has acquired Dovetail Games, a renowned developer and publisher of simulation titles, for an undisclosed amount. The acquisition encompasses all of Dovetail's owned intellectual properties, including the highly acclaimed Train Simulator Classic and Train Sim World, with the senior leadership team, led by CEO Jon Rissik, set to continue managing the company. Although the purchase price remains undisclosed, Focus Entertainment has confirmed that it is in line with current market valuations, with the majority of the payment being made in cash and additional earnouts contingent upon the company's performance over the next few years. Founded in 2008, Dovetail Games has established itself as a prominent player in the simulation genre, with a portfolio that includes train simulators, flight simulators, and fishing games. Focus Entertainment, known for publishing a diverse range of titles such as A Plague Tale and Atomic Heart, has a proven track record of success in the simulation space, having previously released titles like MudRunner and SnowRunner. According to CEO Sean Brennan, Dovetail Games' business model, which focuses on fully-owned IPs and generating recurring revenue through regular content updates, aligns perfectly with Focus Entertainment's strategy. Brennan emphasized that the current management team will continue to operate Dovetail Games, with Focus Entertainment providing support to help expand the company's reach and bring its games to a broader audience. This acquisition marks Focus Entertainment's seventh since June 2020, following its purchases of Deck13, Streum On Studio, Dotemu, Douze Dixièmes, Leikir Studio, and BlackMill Games. When asked about Focus Entertainment's current M&A strategy, Brennan stated that the company will continue to be active in the market, seeking opportunities that align with its strategy and values. The news of the acquisition comes as Focus Entertainment announces record revenues for the financial year ending March 31, 2023, with the company generating €194.1 million in revenue, representing a 36% increase over the previous fiscal year. Dovetail Games is expected to record more than £15 million in revenue for the year ending March 31, 2023, and will be consolidated into Focus Entertainment's accounts starting from April 20, 2023.