Fortis claims that Stillfront has breached the merger agreement in bad faith and owes the sellers the maximum $30 million earnout amount payable under the merger agreement for the financial year 2019. But it’s not clear why they said that, as the Kingdom Maker team moved over to Global Worldwide where it continues on the game.įortis Advisors, representing the sellers of Kixeye, has filed a complaint against Stillfront in the Court of Chancery of the state of Delaware. In January 2020, Stillfront announced it had laid off the Kingdom Maker team, eliminating about 20 jobs. Prior to the acquisition, Kixeye had more than 70 million unique users. Stillfront also allegedly dramatically cut spending on Kixeye’s games after the merger, even though it had described the games as stable and profitable before that. Stillfront allegedly retroactively “readjusted” or intentionally manipulated its pre-merger expenses, making it all but impossible for Kixeye to hit its earnout target. The earnout would be based on a non-GAAP measure of financial performance dubbed adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). Kixeye planned to spin off operations related to the unreleased game Kingdom Maker, which was still under development. Under the original deal, Stillfront did not acquire all of Kixeye. The titles included games such as War Commander: Rogue Assault, Battle Pirates, War Commander, and Vega Conflict.įortis accused Stillfront of doing some creative accounting that made Kixeye’s results look worse than they actually were in an allegedly bad faith attempt to evade the earnout payment. Kixeye made popular real-time strategy games for mobile devices and PCs. In June 2019, Stillfront bought Kixeye for $90 million in an agreement that had an earnout of $30 million based on Kixeye’s expected financial performance for 2019. We’ve asked Stockholm, Sweden-based Stillfront for a comment (and it is at the bottom of the story).
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