The educational gaming company has been purchased in a deal that could reach a total value of $49m if targets are met.
StoryToys, a 10-year-old Irish company that develops educational gaming apps, has been swooped up by UK indie games company Team17.
The deal involves an initial sum of $26.5m, with a further $22.5m if agreed targets are met within the space of three years after the acquisition.
Dublin-based StoryToys was founded in 2011 and its games have been downloaded more than 100m times. The company develops educational apps aimed at pre-school children, featuring characters including Elmo, Mickey Mouse, the Very Hungry Caterpillar and Buzz Lightyear.
“Team17 is the perfect home for StoryToys as we enter into this incredible new chapter,” said Emmet O’Neill, CEO of StoryToys.
“Our goal is to be the number one provider of edutainment content for young children. Collaborating with Team17 will make that a faster and more exciting journey.
“We believe in creating the best possible digital learning experiences for children. We look forward to the possibilities that are opened up by collaborating with what we believe to be the best partner to deliver our ambitions.”
Games produced by Team17 include the Worms series and Overcooked. The company is focused on premium rather than free-to-play content, with games for PC, console, mobile and tablets.
It said that acquiring StoryToys would help it enter the educational entertainment market.
Debbie Bestwick, CEO of Team17, commented: “In StoryToys, we are acquiring a highly creative and successful team whose ability to both entertain and educate children is truly best in class.
“Their track record is without question but the depth of talent that exists within the business gives us an unrivalled position within a hugely exciting and high growth edutainment area.”
The acquisition is also expected to open up commercial opportunities with partners including the Walt Disney Company, the Lego Group, Penguin Books, Sesame Workshop, Apple, Amazon and Google as potential future working partners.