Mobile games developer Huuuge says it is looking at five takeover targets
By Anna Banacka
GDANSK (Reuters) - U.S.-registered mobile games developer Huuuge Inc. is looking closely at five acquisition targets as it seeks to accelerate its growth, its chief executive said on Tuesday, after the company reported a $83 million net loss for 2020.
Warsaw-listed shares of Huuuge, which has a strong presence in Poland and in February conducted the country's largest gaming sector initial public offering (IPO), were more than 5% lower by 1230 GMT, in response to the net loss which was driven by surging financial costs.
"We look for a buy that brings us more scale and success. We have 5 build and buy opportunities in active pursuit," Huuuge's Chief Executive Anton Gauffin told a press conference.
"There are a lot of companies we're talking with including some companies from Poland but our approach is very much global," he added.
Boasting companies such as Cyberpunk developer CD Projekt, Poland has developed into a leading video game exporter due to low labour costs, a young, educated workforce and a thriving gaming tradition rooted in the Communist era.
Huuuge raised around $100 million net from its IPO, which it said it would mostly spend on takeovers.
Gauffin reiterated that Huuuge has no plans to pay a dividend.
"Never say never but it's not a grand active topic," Gauffin said.
(Reporting by Anna Banacka and Adrianna Ebert; Editing by Agnieszka Barteczko, Kirsten Donovan)
