Playtika has agreed to the acquisition. Super playAn Israeli mobile gaming company, the acquisition price ranges from $700 million to $1.95 billion.
The price for the Tel Aviv, Israel-based maker of Dice Dreams and Domino Dreams depends on whether SuperPlay meets its financial targets for three years. If so, the deal would be worth $1.25 billion more, for a total of $1.95 billion. That’s a sign that mobile gaming acquisition activity is picking up again.
The deal is expected to add an experienced team. Playtika It has a track record of launching new and successful games, which, once completed, are expected to be a significant growth driver for Playtika.
Founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, and industry veteran Elad Drory, SuperPlay has emerged as a professional games developer with two successful titles: the fast-growing coin-loot game Dice Dreams and the popular board game Domino Dreams.
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“We view the acquisition of SuperPlay as an important move that will strengthen Playtika’s leadership in mobile games, accelerate growth with scalable titles, and open up new opportunities,” CEO Robert Antokol said in a statement. “SuperPlay’s proven talent and success navigating complex environments is a perfect fit for our team. Together, we are expanding our ability to deliver exceptional experiences to players around the world.”
SuperPlay currently has two more games in development. In 2024, Dice Dreams and Domino Dreams both grew rapidly, reaching an average of 1.7 million daily active users as of August. Gilad and Eyal will continue to lead SuperPlay as its own studio within Playtika.
“We are incredibly excited about this opportunity,” Gilad Almog and Eyal Netzer said in a statement. “It’s a testament to our incredible team that brings creativity and passion to everything we make. With Playtika’s support and assistance, we will continue to grow the most memorable and engaging games in their categories, and exchange knowledge that will push each other to new heights.”
Strategic and financial advantages
Playtika said the benefits of the transaction include acquiring a scalable title in a high-growth coin loot and board category, adding a talented development team with two proven hits and two more in the pipeline, and cultural alignment with the founders and team, which it expects will allow Playtika to increase its formal growth and performance rewards while mitigating downside risk.
Playtika intends to acquire SuperPlay for an upfront consideration of $700 million, subject to customary working capital adjustments, which is expected to be funded using balance sheet cash.
The additional contingent consideration of up to $1.25 billion is contingent on SuperPlay achieving certain financial objectives for 2025, 2026 and 2027. Annual announcement size and eligibility will vary based on revenue and adjusted EBITDA performance. Announcement payments, if any, are expected to be funded through cash generated from ongoing operations and the Company’s balance sheet. Playtika is evaluating financing alternatives and debt maturities in the near term.
Playtika stated that it remains committed to its quarterly dividend and capital return program. The transaction has been approved by the boards of directors of Playtika and SuperPlay. The transaction is expected to close in the fourth quarter of 2024. The proposed acquisition is subject to customary closing conditions and regulatory approvals. The company will provide updated M&A capital allocation guidance as part of its FY2024 earnings. Playtika will hold an investor call tomorrow.
Morgan Stanley & Co. LLC is acting as exclusive financial advisor to Playtika, and Furth, Wilensky, Mizrachi, Knaani – Law Offices is acting as legal advisor. Raine Group and Aream & Co. are acting as financial advisors to SuperPlay. Raz, Dlugin & Co. is acting as legal advisor.
SuperPlay is backed by NFX, 83North, VGames, General Catalyst, Key1 Capital, OG Venture Partners, and Gal Ventures.
Update: Modified the total value of the transaction. 3:06 PM Sep 18, 2024
