Gaming group Embracer expands in VR with Vertigo Games acquisition

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STOCKHOLM (Reuters) - Swedish game developer Embracer has agreed to buy Netherlands-based virtual reality (VR) games maker Vertigo Games for 50 million euros ($59.25 million) upfront and a possible additional payment of up to 65 million depending on its performance over the coming years.

"We have been monitoring the VR market over the past years very closely," Klemens Kundratitz, CEO at Embracer subsidiary Koch Media said in a statement on Wednesday.

"We feel that now is the right time to extend our groups activities into this fast-growing market."

The upfront payment consists of 40 million euros in cash and 10 million in newly issued Embracer B-shares.

"Subject to fulfilment of agreed earnings targets and release of certain titles during an up to 10 years period an earn-out consideration of a maximum of EUR 65 million may be paid," Embracer said.

Embracer, which develops and publishes PC, console and mobile games, has seen its share soar 133% this year, boosted by a strong earnings performance and a string of gaming studio acquisitions.

(Reporting by Johannes Hellstrom)