Los Angeles | July 01, 2024 – Enad Global 7 AB (“EG7”) announces that Daybreak Games (“Daybreak”), a wholly owned subsidiary to EG7, today has entered into an agreement to acquire Singularity 6 Corporation (“S6”). Based in Los Angeles, California, S6 is the developer and publisher behind Palia, an online multiplayer life simulation game currently available in open beta on Nintendo Switch and PC.

The rationale and the key highlights for the Transaction are as follows:

• A strong fit with EG7’s published long-term strategy of establishing a leading middle market publishing business
• An excellent alignment with Daybreak and its expertise in longtail live service and multiplayer online games
• Investing in a product at a later stage of development, which significantly reduces execution risks
• A product with a clear plan for growth through a predictable path to improvement, completion and broader distribution
• Expected meaningful contribution towards the group’s consolidated 2026 financial targets of SEK 3 billion in Net Revenues and SEK 1 billion in Adjusted EBITDA
  
  

Founded in 2018, S6 is a live service, online game studio founded and led by some of the former senior game development talent from Riot Games and comprised of a highly talented AAA development team. S6 is a mission-driven organization, which has been singularly focused on creating a compelling blend of a large-scale multiplayer online world with the highly engaging gameplay experiences from best-in-class life simulation games. This unique combination successfully comes to life in Palia, where players from all over the world can experience the vibrant, immersive fantasy world together, building enduring communities for years to come.

Palia is just beginning its journey and it is off to an excellent start. Palia was originally released in open beta through S6’s own PC platform in August 2023 and since then has been released on Epic Game Store, Nintendo Switch and Steam. Throughout the open beta, S6 team has continued to deliver expanded gameplay and content, driving increases in player population and engagement. Over 4 million players have come to enjoy the experience in open beta so far and as of the end of June 2024, over 100,000 players have been actively enjoying the game daily. The game’s growth trends are promising with the game reaching peak concurrent user level on Steam with its latest update in June. The game is making great progress towards the completion of version 1.0, with a plan to release across all the major platforms, broadening the distribution and increasing the potential for significant further growth in player base going forward.

"Singularity 6 is a perfect new addition to Daybreak Games’ family of game studios with historied success in delivering longstanding multiplayer online live service games. Daybreak Games and Singularity 6 share the same passion for creating immersive online worlds and we are looking forward to joining forces to build, expand and support Palia and its large and passionate community for years to come," commented Ji Ham, CEO of EG7.

"We are excited to be a part of Daybreak Games, home to some of the most beloved MMO franchises and games in the industry," said Anthony Leung, CEO of Singularity 6. "It is incredibly exciting to be able to find like-minded partners who are invested in our vision for Palia. We look forward to combining their talented resources and live service expertise with our team’s creativity and development talent to bring Palia to its the 1.0 release and continue supporting it for decades to come." 

Anthony continued: "Michael Metzger and the Drake Star team have excelled in orchestrating a highly competitive process and identifying the perfect partner for us. Their deep relationships and understanding of the gaming space, together with extensive experience in M&A execution, have been pivotal to the success of this deal."

Michael Metzger, Managing Partner at Drake Star commented: "It was a pleasure to work with Anthony Leung and the team at Singularity 6 and advise on such a landmark deal in the online multiplayer gaming space. Daybreak, renowned for its blockbuster franchises like EverQuest, is a global leader in live service MMO games and a fantastic match with Singularity 6. The combined companies are well-positioned to significantly grow Palia's already large player base and solidify the game as one of the most beloved and successful titles for generations to come."

Drake Star Team: Michael Metzger, Mohit Pareek, Pei Chao Zhuo

Inquiries

For further inquiries, please contact:

Michael Metzger

Managing Partner | Drake Star

michael.metzger@drakestar.com | + 1 310 696 4011

About Singularity 6

Founded in 2018, S6 is a AAA live service, online game studio led by the former game development leadership team from Riot and comprised of highly talented development team. S6 is the developer and publisher behind Palia, one of the highly anticipated games that beta launched in 2023, where players from all over the world are able to experience the immersive fantasy world together, building lasting communities for years to come. S6 is headquartered in Los Angeles, CA and is backed by top gaming investors including Anthos Capital, Andreessen Horowitz, FunPlus and London Venture Partners.

For more information, visit www.singularity6.com.

About Enad Global 7 AB

EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs 470+ game developers and develops its own original IPs, as well as acts as consultants to other publishers around the world through its game development divisions Daybreak Games, Piranha Games, Toadman Studios and Big Blue Bubble. In addition, the group's marketing department Petrol has contributed to the release of 2,000+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage. The group's publishing and distribution departments Fireshine Games hold expertise in both physical and digital publishing. EG7 is headquartered in Stockholm with approximately 630 employees in 16 offices worldwide.

Enad Global 7 is listed on Nasdaq Stockholm with Ticker Symbol: EG7.

For more information, visit www.enadglobal7.com.

About Drake Star 

Drake Star is an award-winning global tech investment bank that has completed over 500 transactions since 2003. The Drake Star global team of experienced professionals and senior advisors across offices in New York, Munich, London, Paris, Los Angeles, San Francisco, Berlin, and Dubai* focuses on mergers & acquisitions and corporate finance services worldwide in Software/SaaS, HR Tech, Digital Services, FinTech, Digital Media, Industrial Tech, Consumer & Retail Tech and Mobility & Sustainability.

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