Update: Motorsport Games filed an 8-K report with the Securities and Exchange Commission, which revealed that Motorsport Games will pay Luminis International $16M in exchange for 100% of the share capital of Studio397. The purchase price will be paid in two installments, a $12.8M payment at the closing of the acquisition and a $3.2M payment on the first-year anniversary of the transaction’s completion.
Original Story: Nasdaq-traded racing game developer, publisher, and esports ecosystem provider Motorsport Games announced Wednesday that it has entered into a binding term sheet to acquire rFactor 2 developer Studio397 from Luminis International. Netherland-based Studio397 is expected to retain its name, branding, and existing development and management team following the acquisition’s completion.
Studio397 and Motorsport Games have a history of collaboration with rFactor 2 providing the simulation platform for the 24 Hours of Le Mans Virtual race and the Formula E Race at Home Challenge, both of which were operated by Motorsport Games. According to a release, Studio397 is set to continue its work on rFactor 2 while also developing the physics and handling models for Motorsport Games’ forthcoming projects.
Furthermore, Motorsport Games President Stephen Hood shared that his company plans to utilize its resources and expertise to enhance rFactor 2, amongst other things by using Epic Games’ Unreal Engine and layering in additional components Motorsport Games has developed over the last two years.
Motorsport Games went public on the Nasdaq earlier this year, raising gross proceeds of approximately $69M USD. The company is also currently in the process of acquiring the karting simulation KartKraft from Black Delta and recently increased its stake in its Le Mans Esports Series joint venture with the 24H of Le Mans race organizer Automobile Club de l’Ouest (ACO) from 45% to 51%.
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