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(Sharecast News) - Video game publisher and developer tinyBuild announced on Thursday that it has sold its quality assurance and localisation subsidiary Red Cerberus for $1.5m in cash to a North American software and hardware consultancy specialising in testing.
The AIM-traded firm said the sale was expected to be marginally accretive in 2025, with proceeds earmarked for general working capital.
It said the transaction was subject to standard net working capital adjustments, and completed as part of tinyBuild's ongoing efforts to streamline operations and refocus on core publishing and development activities.
Red Cerberus, based in So Paulo, Brazil, was acquired in 2021 alongside Versus Evil.
It generated $4.3m in revenue and recorded a net loss of $0.1m in 2024 on an unaudited basis.
The subsidiary had a book value of $0.8m at year-end.
"The sale of Red Cerberus marks an important milestone in streamlining our portfolio and focusing on what we do best - creating and growing great IP," said chief executive officer Alex Nichiporchik.
"Red Cerberus has been a valuable partner in our journey, and I'd like to thank the entire team for their dedication."
Nichiporchik said that reallocating resources to the company's core creative pipeline would help it to maximise long-term revenue potential with the release of new game IP.
"We look forward to launching certain high-potential games in 2025 and remain excited about the future of tinyBuild."
At 1424 BST, shares in tinyBuild were down 3.91% at 5.53p.
Reporting by Josh White for Sharecast.com.
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