Publisher Playtika is to acquire fellow Israeli firm SuperPlay for an initial $700m.
The transaction has a potential additional consideration of $1.25bn if certain targets are met over the course of the next three years, Playtika said.
Dice Dreams and Domino Dreams are SuperPlay’s biggest titles, and it has two more games on the way.
SuperPlay has around 240 staff and was founded by former Playtika employees Gilad Almog and Eyal Netzer, alongside former TabTale and Rovio designer Elad Drory. Almog and Netzer will continue to lead SuperPlay as its own studio within Playtika.
Playtika said Dice Dreams had hit an annual revenue run-rate of $100m in under three years, with Domino Dreams achieving the same feat in under two. In Sensor Tower’s US iOS top grossing chart for August, Dice Dreams and Domino Dream ranked 24th and 90th respectively. The two games combined have 1.7m daily active users, Playtika said.
In a slide for investors, Playtika added that SuperPlay had earned $265m in the last year, showing 157% revenue growth and 85% growth in daily active users in the last twelve months. The firm also said that Dice Dreams will become Playtika’s fifth biggest title by revenue, and Domino Dreams will become a top ten title for the firm.
“This proposed acquisition strongly aligns with our strategic vision of acquiring best-in-class mobile gaming companies with potential for category leading franchises,” said CEO Robert Antokol in a letter to shareholders. “SuperPlay is a company that very closely resembles our own business, both in terms of their relentless pursuit of delivering a premier mobile gaming experience and cultivating a base of loyal users who will come back to the game time and time again.”
“SuperPlay has two franchises with meaningful revenue scale, demonstrating strong financial performance that will contribute significantly to our top-line, and help further strengthen and diversify our portfolio of games while our business returns to revenue growth.”
Antokol continued: “Notably, the cofounders Gilad Almog and Eyal Netzer, have successfully launched and scaled two new games during a challenging period in the mobile gaming industry, and their success amidst industrywide difficulties highlights their exceptional capabilities and aligns with our commitment to innovation and growth.”
“By integrating SuperPlay’s games into our portfolio, we anticipate not only diversifying our game offerings but also capturing a larger share of the market. The team’s proven ability to navigate and thrive in a complex environment strengthens our confidence in the growth prospects of this acquisition.”
