Israeli mobile game developer Playtika Holdings Co., Ltd. (Nasdaq: PLTK) announced that it will acquire an Israel-based mobile gaming company. Super Play The acquisition price is $700 million, with an additional contingent consideration of up to $1.25 billion based on EBITDA performance and the achievement of certain financial targets over three years, meaning the final acquisition price could reach $1.95 billion.
According to Playtika, the transaction is expected to close in the fourth quarter of 2024. Contingent payments, if any, are expected to be funded from cash generated from ongoing operations and the company’s balance sheet. Playtika is evaluating financing alternatives and debt maturity dates in the near term. Playtika said it “remains committed to its quarterly dividend and capital return program.” The transaction is expected to add to Playtika an experienced team with a track record of releasing new successful games and is expected to be a significant growth driver for Playtika if completed. The proposed acquisition is subject to customary closing conditions and regulatory approvals.
Founded in 2019, the company has its offices in Rosh Ha’ayin
SuperPlay, which develops multiplayer mobile games, was founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, and industry veteran Elad Drory. The Rosh Ha’ayin-based company released its popular mobile game Dice Dreams six months after it was founded. Domino Dreams is also a popular title, and the company has two more games in development. SuperPlay’s senior management includes CTO Chen Mark, General Manager Dr. Noam Banon, and CFO Amir Hanin. According to IVC, SuperPlay has 300 employees, more than 100 of which are in Israel, as well as offices in Ukraine, Romania, and India. Almog and Netzer will continue to lead SuperPlay in their own studios following the acquisition.
“This is a testament to the incredible team we have, who bring creativity and passion to everything we create. With Playtika’s backing and support, we will continue to cultivate the most impressive and engaging games in their categories, exchanging knowledge that will push each other to new heights,” said Almog and Netzer.
The company has raised an estimated $30-35 million over three funding rounds from investors including Eyal Ofer’s OG Venture Partners, Key1, an Israeli fund founded by former Goldman Sachs executives, Gigi Levi-Weiss’s NFX, General Catalyst, North83, and VGames. NFX and General Catalyst are believed to be the company’s first investors in a $6 million seed round. All investors stand to gain significantly from the deal.
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“We see the acquisition of SuperPlay as an important move to strengthen Playtika’s leadership in mobile games, drive growth through an expansion of titles, and unlock new opportunities,” said Robert Antokol, CEO of Playtika. “SuperPlay’s proven talent and success navigating complex environments is a perfect fit with our team. Together, we will expand our capabilities to deliver exceptional experiences to players around the world.”
Playtika’s shares rose 0.77% on the Nasdaq yesterday, giving it a market capitalization of $2.935 billion.
Published by Globes (en.globes.co.il), an Israeli business news site, on September 19, 2024.
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