At what enterprise value was SYSTEM ERA SOFTWORKS acquired in 2023?

During the acquisition of SYSTEM ERA SOFTWORKS by DEVOLVER DIGITAL in 2023, the transaction's Enterprise Value is estimated to be in the range of 20M - 50M USD.

What was the EV/EBITDA of SYSTEM ERA SOFTWORKS when it was acquired by DEVOLVER DIGITAL?

The estimated EV/EBITDA multiple for SYSTEM ERA SOFTWORKS is in the range of 10x - 18x.

When was SYSTEM ERA SOFTWORKS acquired by DEVOLVER DIGITAL?

SYSTEM ERA SOFTWORKS was acquired by DEVOLVER DIGITAL in 2023.

What was the revenue of SYSTEM ERA SOFTWORKS at the time of the deal?

The revenue of SYSTEM ERA SOFTWORKS at the time of the deal is estimated to be in the range of 5M - 25M USD.

What was the EBITDA of SYSTEM ERA SOFTWORKS during the acquisition?

SYSTEM ERA SOFTWORKS's EBITDA is estimated to be in the range of 0M - 5M USD.

How is the data for the SYSTEM ERA SOFTWORKS acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the SYSTEM ERA SOFTWORKS deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://markets.ft.com/data/announce/detail?dockey=1323-16190503-3DRFG3GUR6RS6A1172RH3PNN2Q#:~:text=Devolver%20Digital%2C%20Inc%20(AIM%3A,by%20a%20combination%20of%20cash

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Home Database TMT (Tech, Media, Telecom)SYSTEM ERA SOFTWORKS

11/2023

SYSTEM ERA SOFTWORKS acquired by DEVOLVER DIGITAL

UNITED STATES Software / Gaming & Consumer Apps EV 20M - 50M USD

Context

Devolver Digital has completed the 100% acquisition of System Era Softworks, Inc. The transaction involves a multi-part consideration structure including upfront cash and shares, along with deferred and performance-based earn-out components, reflecting the firm's focus on long-term alignment with the target's management team. The acquisition serves as a strategic pivot for Devolver to extend its footprint beyond the traditional premium indie market. By integrating System Era, Devolver gains access to proven "Expandable Game" expertise and proprietary live-operations technology. This infrastructure is expected to be leveraged across future internal and external titles, reducing development costs and broadening the studio's technical capabilities in GaaS-based models. Furthermore, the acquisition strengthens Devolver's presence in the Pacific Northwest, a critical hub for technical talent.

SYSTEM ERA SOFTWORKS, which reported an EBITDA margin of in 2022, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.3x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

System Era Softworks is a specialized video game development studio known for its expertise in building and maintaining high-retention, "Expandable Game" titles. Based in Seattle and founded by industry veterans with backgrounds in major AAA franchises, the firm has established a distinctive competency in creating sandbox, community-driven experiences. The studio’s core value proposition lies in its ability to combine traditional game design with sophisticated, proprietary live-operations technology, allowing for consistent, long-term player engagement and recurring content delivery. The studio operates a highly disciplined development model that emphasizes iterative updates and stable game-as-a-service (GaaS) architecture. By successfully managing the full lifecycle of its intellectual property, the team demonstrates a rare ability to sustain and grow player communities years after initial release.

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2021

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REFERENCES

Valuation range: EV 20M - 50M USD

Revenue range: 5M - 25M USD

EBITDA range: 0M - 5M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SYSTEM ERA SOFTWORKS by DEVOLVER DIGITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: system era softworks

Acquirer: devolver digital