Focus Entertainment Acquires Train Simulator Developer, Dovetail Games

On April 20, 2023, Focus Entertainment revealed its acquisition of 100% of Railsimulator.com, the parent company of the award-winning UK-based developer and publisher Dovetail Games Group. Known for their skill in IP development in the simulation genre, Dovetail Games has become a prominent reference point for train simulators, consistently delivering immersive and authentic sim experiences.

Focus Entertainment CEO, Sean Brennan, expressed his enthusiasm for welcoming the talented Dovetail Games team into the Focus Group. Brennan acknowledged the studio’s IPs as a fitting addition to the Focus lineup, complementing the company’s strategy and offering players unique, compelling sim games celebrated globally.

Dovetail Games CEO, Jon Rissik, shared similar sentiments, emphasizing the shared values and commitment to simulation gaming between the two companies. Rissik is confident that Focus Entertainment’s publishing and distribution power will enhance Dovetail’s digital publishing capabilities, allowing the company to expand in key markets like North America and access new monetization opportunities.

Dovetail Games has successfully engaged and entertained millions of players worldwide with sim franchises such as Train Simulator Classic and Train Sim World. The company has adopted a strong business model, combining full game releases with a live service content strategy that generates recurring revenue. With an extensive library of over 900 DLC pieces, Dovetail Games consistently provides players with fresh content, updates, and deep engagement.

The acquisition of Dovetail Games, a UK-based studio with established IPs and recurring revenue, aligns with Focus Entertainment’s strategy and represents progress in moving up the value chain. The acquisition is expected to be accretive from a percentage margin standpoint. Dovetail Games has also recently entered the digital board game space with CATAN: Console Edition and aims to offer authentic board game experiences to video gamers worldwide. The company is projected to record over £15m in revenue for the year ending March 31, 2023.

Starting April 20, 2023, Dovetail Games will be consolidated into Focus Entertainment’s accounts. The acquisition purchase price is in line with current market multiples and includes an upfront payment primarily in cash, as well as price complements based on company performance. Key senior managers, including Dovetail Games CEO Jon Rissik, will continue to oversee the company, committing to the long-term value creation of Dovetail.