Forgame spends $94.2 million on a 21% stake in Tower of Saviors dev Mad Head

Chinese game publisher Forgame (HKG:0484) has announced it's purchased 21 percent of Magic Feature Inc.

It's the holding company for Mad Head, one of the rising stars of Chinese mobile development.

Its game Tower of Saviors has been downloaded more than 10 million times, and is a top grossing game in China, Hong Kong and Taiwan, both on iOS and Android.

Indeed, in China its popularity has been boosted by the release of versions for Tencent's QQ and WeChat social mobile platforms.

And US publisher Storm8 has released a version in the west.

The cost of deal is $94.2 million, which is split into three parts.

The major part is $70 million in upfront cash, while $20 million will be held in an escrow account to be paid at a late date following the completion of all the terms in the sale and purchase agreement.

A further $4.2 million is performance-related.

The deal follows Forgame's floatation on the Hong Kong exchange in October 2013. At the time, it said it would use 60 percent of the money raised on company and IP acquisitions.