DoubleU Games Co., Ltd., a leading developer of social casino games, has entered into an agreement to acquire Turkish gaming studio Paxie Games, developer of Merge Studio: Fashion Makeover.
DoubleU Games will acquire a 60% stake for $27.0 million at closing. The remaining 40% will be acquired over three years, subject to achieving certain financial targets, resulting in full ownership by the end of the third year.
The acquisition will be financed through a combination of treasury shares and cash. The deal is expected to close in Q1’25.
The acquisition of Paxie Games marks DoubleU Games’ strategic entrance into the rapidly growing Merge-2 market. The transaction is expected to add meaningful growth and synergy to DoubleU Games, with Paxie Games achieving significant cumulative downloads and revenue and consistently ranking in the Top 5 within the Merge-2-genre, based on SensorTower.
Notably, this acquisition will also mark the first time that DoubleU Games’ acclaimed titles are playable in Korea – a significant milestone for DoubleU Games, which currently derives 100% revenue from the international market.
Official statements from Paxie Games and DoubleU Games
“We believe the acquisition of Paxie Games represents a significant move to secure an expanded portfolio of new mobile gaming titles, driving growth and unlocking new opportunities.
We recognize Paxie Games’ competitive edge lies in users’ extended playtime with intuitive gameplay, instant rewards and seamless integration between meta and core game mechanics. Additionally, its operational capabilities are enhanced by execution of diverse and creative LiveOps events.”
Jay Choi, Chief Financial Officer of DoubleU Games
“We are thrilled about the incredible opportunities ahead for our company. Merge Studio, our rapidly scaling hit game, is only the beginning. Through our full-scale collaboration with DoubleU Games, we are set to achieve even greater growth by expanding our portfolio with exciting new games, reaching a broader audience, and further growing our business.
By leveraging DoubleU Games’ established marketing network in the U.S., we plan to drive substantial growth and expand our reach. Together, the combined expertise of Paxie Games in game development and DoubleU Games’ financial strength will pave the way for mutual success and groundbreaking innovation in the gaming industry.”
Direnç Çelik, CEO of Paxie Games.
Arma Capital, an Istanbul-based M&A advisory firm, has provided financial advisory services to DoubleU Games during this transaction. Legal advisory services were provided by BASEAK for DoubleU Games.
