Modern Times Group (MTG) has announced the acquisition of Indian developer of PlaySimple, creator of mobile word games such as Word Trip and Crossword Jam.
MTG, through its subsidiary MTG Gaming AB, will acquire 100% of the shares in PlaySimple for a total consideration of approximately SEK 3,090 million ($360 million) excluding performance based earn-outs, on a cash and debt free basis. MTG intends to pay an upfront consideration of 77% in cash and 23% in MTG class B shares.
PlaySimple has seen huge success in the past couple of years, growing its revenues by 144% in 2020 to SEK 706 million ($83 million). This momentum has continued into 2021, with estimated H1 revenues up approximately 82% to SEK 510-540 million ($60-64 million)
“We’re very happy to welcome PlaySimple to our family of gaming companies,” said MTG’s Group President and CEO Maria Redin. “PlaySimple is a rapidly growing and highly profitable games studio that quickly has established itself as one of the leading global developers of free-to-play word games, an exciting new genre for MTG. An experienced management team and focused, data driven operating model has allowed PlaySimple to develop multiple game hits especially popular with the growing global audience of female gamers. What’s more, the company has a pipeline of several exciting new games, some of which are card games, a new genre for PlaySimple.
“PlaySimple’s ad-tech and cross promotion competences which have played a pivotal role in their own journey can in time allow us to accelerate the growth of our whole gaming vertical. Expanding our geographical footprint into the Indian subcontinent will also provide access to one of the best talent pools in the world.
“Acquisitions are a strategic part of our value creation story. Through the acquisitions of Hutch, Ninja Kiwi and now PlaySimple, MTG has built a highly attractive games portfolio that is significantly more diversified in terms of genres, audiences, and revenues, which provides improved visibility, stability and opportunities.”