Modern Times Group MTG AB (MTG) announced the acquisition of 100% stake in PlaySimple, a leading word games developer from India.
PlaySimple is a rapidly growing, highly profitable business and one of the global leaders in the attractive mobile word games genre. The up-front consideration amounts to approximately SEK 3,090 million (on a cash and debt free basis) and performance based earn-out payments amount to an expected value of SEK 1,287 million in aggregate.
Since December 2020, MTG has with the acquisitions of Hutch, Ninja Kiwi and now PlaySimple accelerated the buildup of a highly attractive gaming vertical which on a pro forma basis generated revenues of approximately SEK 4,421 million in 2020 and SEK 1,158 million in Q1 2021 with monthly (MAU) and daily active users (DAU) of approximately 30 and 6 million respectively, the company said in its release.
MTG’s Group President and CEO Maria Redin commented: “We’re very happy to welcome PlaySimple to our family of gaming companies. 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,” Redin said.
“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,” Redin added.
PlaySimple’s co-founder and CEO Siddharth Jain commented: “We’re delighted to join the MTG family – MTG’s approach to investments offers us creative freedom, and the opportunities created by the GamingCo really resonate with our team. We’re excited to have found a new home for our company, one where our team can learn and grow alongside our fellow companies.”
Co-founders and management team members Siddhanth Jain, Suraj Nalin and Preeti Reddy jointly commented: “We’re very proud of the games we’ve developed over the years, and of the infrastructure and scale that we’ve achieved with our team. As we join the MTG family, we look forward to leveraging our proprietary technology across MTG’s gaming portfolio, expanding into the European market, investing in cutting-edge technology and building exciting new games.”
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