Swedish conglomerate Thunderful Group is divesting Nordic video game and peripheral distributor Nordic Game Supply.
Nordic Game Supply works with key retail partners in the Nordic region and currently supplies over 1,500 storefronts.
Thunderful, which publishes titles like Planet of Lana, Somerville, and Steamworld Build, had been conducting a strategic evaluation of Nordic Game Supply due to “difficulties with its profitability throughout 2022 and 2023.”
It had been in conversations with a number of potential buyers as part of that evaluation, and has now chosen to sell the vast majority of Nordic Game Supply assets and business operations to Handelsselskabet af 15 Marts 2024, a company owned by acting Nordic Game Supply CEO Henrik Mathiasen.
The two parties have signed off on a preliminary purchase price of SEK 76 million ($6.9 million) based on the book value of inventory adjusted for an agreed discount. Thunderful claims the deal will have a “positive impact” on its operating cash flows, resulting in reduced net debt.
Thunderful follows mass layoffs with asset sales
Thunderful is currently attempting to course-correct after years of over-investing. The company laid off 20 percent of its workforce in January 2024 after spending years acquiring game studios and other companies. Those layoffs are part of a wider restructuring program designed to strengthen Thunderful’s “long-term competitive position.”
“[Restructuring] actions will include both significant staff reductions and evaluation of divestment of non-strategic assets,” reads a statement issued by Thunderful at the time. “The need for Thunderful to enact these changes stems primarily from over-investments made in the last few years.”
In February, Thunderful CEO Martin Walfisz told investors the restructuring program was off to a “good start” and would begin making significant progress in the second half of 2024. Those comments accompanied Thunderful’s full-year report for 2023, where the company revealed that SteamWorld Build failed to meet its sales expectations.
In a preliminary trading update for the first-quarter ended March 31, 2024, Thunderful said net revenue declined by 36 percent to SEK 69 million ($6.3 million) within its Games segment.
“The decline in sales is mainly due to lower demand in the quarter compared to previous year,” explained the company. “The Group continues to work on the restructuring program including evaluation of divestment of non-strategic assets”
Thunderful will release its complete Q1 report on May 15, 2024.