Playtika, a leading name in the mobile gaming world, has announced its agreement to acquire SuperPlay, a rising star in the industry. This acquisition aims to fuel Playtika’s growth by adding SuperPlay’s proven expertise in launching and scaling successful mobile games.
Key Benefits of the Acquisition
- SuperPlay boasts two successful titles: Dice Dreams (coin looter genre) and Domino Dreams (board game genre). With two more games in development, they’ve achieved impressive growth, reaching 1.7 million Average Daily Active Users as of August 2024.
- Playtika’s Vision: Playtika views this acquisition as a strategic move to solidify its leadership in the mobile gaming market. The addition of SuperPlay’s talented team and successful games will significantly boost Playtika’s growth path.
Strategic and Financial Advantages
This acquisition is not just about expanding Playtika’s portfolio; it aims to create a stronger, more dynamic future for both companies.The strategic and financial advantages of this partnership are evident:
Expanding into New Territories
SuperPlay’s success in the rapidly growing coin looter and board game genres offers Playtika an opportunity to broaden its reach and capture new audiences. With established titles like Dice Dreams and Domino Dreams already gaining popularity, Playtika gains immediate access to these exciting and lucrative markets.
Enhancing Development Capabilities
SuperPlay’s development team isn’t just skilled; they are proven hit-makers. Their ability to create engaging and successful games is a valuable asset that will undoubtedly strengthen Playtika’s overall game development capabilities.
A Shared Vision and Culture
Beyond the games themselves, there’s a strong cultural alignment between Playtika and SuperPlay. This shared vision and collaborative spirit will foster a smooth integration and create a unified team ready to tackle new challenges together.
Fueling Playtika’s Growth Engine
The addition of SuperPlay’s successful games and talented team will be a significant growth driver for Playtika.This acquisition is prepared to have a significant impact on Playtika’s future performance and market position.
Mitigating Risk Through Performance
The earnout structure of the deal is designed to reward success while minimizing potential financial risks.By tying future payments to SuperPlay’s financial performance, Playtika ensures that both organizations are incentivized to achieve shared financial and strategic goals.
This acquisition is a strategic move designed to benefit both Playtika and SuperPlay. It’s a story of shared vision, complementary strengths, and a commitment to creating engaging and successful mobile gaming experiences for players worldwide.
Transaction Details
- Upfront Payment: $700 million, funded through Playtika’s cash reserves.
- Contingent Consideration: Up to $1.25 billion over three years, based on SuperPlay achieving specific financial goals.
- Earnout Structure: Tied to both revenue and Adjusted EBITDA performance.
- Funding: Earnout payments, if achieved, will be funded by operational cash flow and existing cash reserves. Playtika is also assessing financing options.
- Dividend Commitment: Playtika remains committed to its dividend and capital return program.
- Timeline: Expected to close in the fourth quarter of 2024, subject to regulatory approvals and customary closing conditions.
Looking Ahead
Playtika plans to provide updated guidance on its mergers and acquisitions capital allocation strategy during its fiscal year 2024 earnings announcement. The company will also host a conference call tomorrow morning to discuss the acquisition in detail.
