In one of the biggest releases among Indian gaming startups, PlaySimple was acquired by Swedish gaming major Modern Times Group (MTG). The companies have reached an agreement of approximately $ 360 million (Rs 2,691 crore) for the acquisition.
Besides the set amount, there is also a reward of $ 150 million (Rs 1121 crore) for the Indian gaming company if it manages to achieve certain performance metrics. However, the terms of the performance-based price supplements have not yet been made public.
As for the acquisition amount of $ 360 million, MTG will pay 77% of the acquisition amount to the Indian game developer in cash. The remainder of the amount of a 100% acquisition will be paid in the form of Class B MTG shares. MTG declares that it “will call an extraordinary general meeting to decide on the counterpart shares”.
In its statement, MTG cites the exponential growth of the PlaySimple market as the driving force behind this acquisition. He mentions that the company is one of the leading game developers and publishers in India and “is one of the world leaders in the fast growing mobile word game genre.”
Shedding light on the measures, he explains that PlaySimple increased its revenue by 144% in 2020 to reach $ 83 million. Growth is expected to continue in 2021, with first half revenue up around 82%.
PlaySimple currently serves the mobile word game genre and has an active portfolio of nine games in total. These include titles such as “Daily Themed Crossword”, “Word Trip”, “Word Jam” and “Word Wars”. It collectively has over 75 million installs and 7 million monthly active users.
Going forward, PlaySimple plans to release four new games this year and may expand into the card games genre as well.
The acquisition of PlaySimple further diversifies MTG’s portfolio which now includes a wide variety of game genres. These include city building and strategy games by InnoGames, mobile races by Hutch, idle games by Kongregate, tower defense games by Ninja Kiwi, and word games with card games that will soon follow by PlaySimple.
MTG also expects the acquisition to bear fruit by attracting more female players to its platforms. PlaySimple’s growing female player audience, which today represents nearly 80% of its total player base, is believed to be contributing to this.