Sun. Apr 14th, 2024
0 0
Read Time:2 Minute, 57 Second

Digital entertainment company, Playtika Holding Corp. (NASDAQ: PLTK), will reportedly acquire fellow Israel-based company Innplay Labs for as much as $300 million (£241.4m/€281.5m), having entered into a definitive agreement. 

Per Form 8-K posted by Playtika on Sept. 14, 2023: Playtika Limited agreed to purchase from the Sellers, and the Sellers agreed to sell to Playtika Limited, all of the issued and outstanding share capital of InnPlay (the “Transaction”) for an aggregate purchase price equal to (i) $80,000,000, payable at the Closing, subject to certain post-closing adjustments, plus (ii) earnout payments of up to $220,000,000, the amounts of which will be based on certain gross revenue growth performance metrics of InnPlay during the two years following the closing the Transaction, in each case, payable following the end of the applicable measurement period.

And while the closing date of the deal is not disclosed in the filing with the Securities and Exchange Commission (SEC), “customary termination rights” are included in the Purchase Agreement, if the Transaction does not close on or before December 31, 2023. Playtika also stated the proposed acquisition remains subject to certain, customary closing conditions.

Founded in 2019, the Israeli-based mobile gaming studio has become known as an innovator, crafting engaging and fully customized game experiences, such as Water Ride, Brix Master and Animal Kingdom.

According to the official press release issued on Sept. 15, 2023, Robert Antokol, CEO of Playtika, thinks the “strategic” expansion of the company’s already impressive portfolio will be greatly beneficial. He claimed: “The acquisition of Innplay Labs represents another strategic expansion of our portfolio with a promising and innovative growth franchise in the Luck Battle genre.”

Ore Gilron, the CEO of Innplay, has a similar opinion. He stated: “In 2019, Innplay Labs was formed with the goal of shaping the next generation of mobile gaming. Four years later, our robust team of talented, highly skilled game operators have put their passions together to create an outstanding game product with rich, engaging content, providing our audience with a uniquely entertaining gaming experience.”

Huge steps towards expansion:

Playtika started strong in this quarter. After the acquisition of the Youda Games portfolio, which cost €81.3 million, Innplay Labs was the next step in this rapid expansion.

When it comes to the Youda Games, Playtika is acquiring the whole portfolio of games, including hit releases such as Governor of Poker, the social card-themed game, and other gambling-themed releases. The acquisition is planned to be completed in the third quarter of the year.

However, not all acquisitions were successful – the company failed to acquire Rovio Entertainment, the developer of the worldwide famous Angry Bird game. In the end, Sega Sammy Holdings gave a better offer and finished the acquisition of the famous company. 

Drop in revenue and cost reduction:

Despite signing the important partnership and acquisition agreements, the second quarter of the year wasn’t all a success for Playtika. The revenue decreased by 2.5% compared to the previous year, and there was a $642.8 million decrease in three months to 30 June.

The social casino games revenue decreased by 9.9%. But not all revenues dropped – the casual games revenue was increased by 3.7%, as well as in the Blitz Bingo games, where the revenue was increased by 6.3%

However, the company reduced the costs, which led to an increase in the net profit of 340.5%. On top of that, EBITDA increased by 6.7%. 

Playtika Signs Acquisition Agreement with Israeli-based Innplay Labs for up to $300 Million_1

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

By admin