Selskabsmeddelelse

Enad Global 7 (publ) AB accelerates tax-related contingent consideration linked to the Daybreak acquisition

Enad Global 7 (publ) AB (“EG7”) today announces that it has entered into an agreement to settle the remaining tax-related contingent consideration associated with the acquisition of Daybreak, by paying USD 11.0 million (approximately SEK 97 million) of which approximately USD 5.0 million refers to unsettled amounts due for the historic years 2024 and 2025 and the remaining USD 6 million refers to future periods from 2026 to 2035. EG7’s remaining tax shield from the Daybreak acquisition amounts to USD 44.6 million. By doing this, that related-party transaction relating to this contingent consideration is terminated. The agreement is expected to generate USD 1-3 million in improved cash generation per annum over the next 12 years, contributing approximately SEK 19 million to Net Profit in Q1 2026. With this accelerated settlement of the Daybreak tax-related contingent consideration, the contingent consideration remaining on the balance sheet would be reduced to SEK 11.8 million for the Group.

The acquisition of Daybreak created a tax-deductible goodwill, which is amortized over 15 years, creating a significant annual tax shield for Daybreak. Under the share purchase agreement, EG7 and the sellers of Daybreak (including Ji Ham and Jason Epstein) agreed to split the tax benefit over that 15-year period. Following the settlement, EG7 retains the full economic benefit of the remaining U.S. tax amortization associated with the Daybreak acquisition, which amounted to USD 44.6 million by the end of 2025. In total, the EG7 Group has tax benefits to be used against future revenues of SEK 724.3 million.

As of today, three payments have been made to the Sellers applicable for the years 2021-2023 to a total of USD 6.2 million. Accelerating this payment results in cleaning up the balance of contingent considerations and decreases the nominal payments of USD 21 million in future payments to USD 11 million today. As of December 31, 2025, the Net Present Value in EG7’s financial statements, recognized as a contingent consideration, was SEK 116.4 million (USD 12.7 million), triggering an increased Net Profit of approximately SEK 19 million that will be attributable to Q1 2026 financial figures. The Board of EG7 sees it as beneficial to the shareholders of EG7, as well as for the Sellers.

The transaction has been reviewed and approved by EG7’s independent board members, in accordance with the Company’s policies for related-party transactions and conflicts of interest.

FOR MORE INFORMATION, PLEASE CONTACT:
Fredrik Rüdén, Group Deputy CEO and CFO
Phone: +46 733 117 262
fredrik.ruden@enadglobal7.com

Robin Lundell, Head of Investor Relations & Sustainability
Tel: +46 733 117 262
Robin.lundell@enadglobal7.com

About EG7
EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs approximately 360 game developers and develops its own original IPs, as well as acts as consultants to other publishers around the world through its game development divisions Daybreak Games, Piranha Games and Big Blue Bubble. In addition, the group's marketing department Petrol has contributed to the release of 2,000+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage. The group's publishing and distribution departments Fireshine Games hold expertise in both physical and digital publishing. EG7 is headquartered in Stockholm with approximately 560 employees in 12 offices worldwide.

Enad Global 7 is listed on Nasdaq Stockholm with Ticker Symbol: EG7