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Grom Social Enterprises, Inc (NASDAQ:GROM), which recently announced that it has entered into a Letter of Intent (LOI) to acquire Arctic7, the Austin, Texas-based game and co-development services provider, today announced the formation of a synergy council that will, upon completion of the acquisition, explore gaming production and other opportunities for ancillary revenue growth.
Grom, a media, technology, and entertainment company focused on family-friendly programming, web filtering technology and safe social media for kids, intends to explore ways Arctic7's proven expertise can complement its existing entertainment offerings of safe, social media for kids, its growing catalog of original intellectual properties and its robust 2D animation production studio, based in Manila, the Philippines. Specifically, the synergy council will be tasked with delving into ways Grom might embrace kid- and family-friendly gaming into the company's platforms, create original content together and pursue opportunities the acquisition presents for Top Draw Animation's 300+ animation pros.
Darren Marks, CEO of Grom, said: "The gaming market represents $180B, with children's gaming being sizable +$20bn of that. As Arctic7 continues to focus on its current market approach, Grom and Arctic7 believe there is a strong opportunity to further drive revenue growth including via expanding existing Grom properties to games, synergies in content creation and more."
Arctic7 attended the GDC conference held in San Francisco in March. Igor Efremov, CEO of Arctic7, said: "GDC 2024 was the most successful event so far for Arctic7 with more than 40 meetings at the conference focussed on building momentum and gaining traction for our full-game development and co-development offerings. We were also able to talk to partners about our original in-development IP and talked with studios about potential M&A opportunities."
Under the leadership of its CEO, Igor Efremov, Arctic7 has quickly established itself in the gaming industry and demonstrated impressive growth, achieving $7.9 million (unaudited) in its first fiscal year (FY23) and anticipates reaching approximately $14 million (unaudited) in FY24. Launched in 2022, Arctic7 has focused on becoming an industry leader and innovator by delivering exceptional experiences in full game development, co-development, and virtual production for its partners and players and serve as a nexus for creative collaboration within the entertainment industry.
Posted In: GROM
