By Dominic Chopping
STOCKHOLM – Swedish games and e-sports group Modern Times Group MTG AB announced on Friday that it had acquired Indian word game developer PlaySimple for up to SEK 4.38 billion ($ 510.7 million).
PlaySimple has a live portfolio of nine games, with over 75 million installs and 7 million monthly active users. It has four additional new games in the works that will launch in 2021 and expand into the card game genre, MTG said.
“PlaySimple is a fast growing and highly profitable games studio that has quickly established itself as one of the world’s leading developers of free word games, an exciting new genre for MTG,” said Maria Redin, Managing Director of MTG .
“An experienced management team and a data-driven operating model have enabled PlaySimple to develop several successful games that are particularly popular with the growing global audience of female gamers,” she added.
MTG will pay SEK 3.09 billion in advance and up to SEK 1.29 billion in additional performance-based price-supplement payments.
The initial consideration will consist of 77% in cash and 23% in newly issued Class B MTG shares and the earn-out will be paid in cash.
PlaySimple recorded sales of SEK 706 million in 2020 with adjusted profit before interest, taxes, depreciation and amortization of SEK 154 million.
Write to Dominic Chopping at [email protected]