Playtika's $300 Million Acquisition of Innplay Labs
Date: 2023-09-15 Author: Dima Zakharov Categories: EVENTS
In a significant development in the world of social gaming, Playtika, the renowned social gaming developer, has made headlines by announcing its acquisition of Innplay Labs, an Israeli-based mobile gaming studio. The deal, valued at up to $300 million, marks a strategic move for Playtika, expanding its gaming portfolio.
Playtika will initially pay $80 million for the acquisition, with potential for the final price to be even higher due to certain clauses within the agreement. While specific details about the deal's closure date were not disclosed, Playtika did mention that the acquisition is subject to customary closing conditions.
Founded in 2019, Innplay Labs is known for its successful games, including Water Ride, Brix Master, and Animal Kingdom. The studio has received investments from various sources, including Vgames, a venture fund supporting game entrepreneurs.
Playtika's CEO, Robert Antokol, expressed excitement about the acquisition, stating that it aligns with the strategic expansion of their gaming portfolio. He emphasized the opportunity to leverage their expertise in live operations and proprietary technology for sustained growth.
"Innplay Labs brings a promising and innovative growth franchise in the Luck Battle genre," Antokol said. "We share a culture of focus, speed, and agility, being fellow Israeli-based companies. We look forward to this journey together."
Innplay Labs' CEO, Ore Gilron, added, "Our talented team has created outstanding game products with rich, engaging content, providing a uniquely entertaining gaming experience. Joining Playtika's portfolio will take Innplay Labs to new heights."
This acquisition represents Playtika's second major transaction in the quarter, following the acquisition of Youda Games' portfolio of content from Azerion for €81.3 million. The Youda Games collection includes popular titles like Governor of Poker.
Meanwhile, earlier attempts by Playtika to acquire Rovio Entertainment, known for the Angry Birds series, were unsuccessful. Playtika filed a proposal in November 2022 and increased its offer in January. However, Playtika withdrew its proposal in March, and Rovio was eventually acquired by Sega Sammy Holdings for €706 million in April.
Despite mixed results in Q2, Playtika reported positive financial outcomes. While revenue dipped by 2.5% year-on-year to $642.8 million, comprehensive net profit surged by 340.5% to $90.3 million. Adjusted EBITDA for the quarter also increased by 6.7% to $215.0 million.
Playtika will initially pay $80 million for the acquisition, with potential for the final price to be even higher due to certain clauses within the agreement. While specific details about the deal's closure date were not disclosed, Playtika did mention that the acquisition is subject to customary closing conditions.
Founded in 2019, Innplay Labs is known for its successful games, including Water Ride, Brix Master, and Animal Kingdom. The studio has received investments from various sources, including Vgames, a venture fund supporting game entrepreneurs.
Playtika's CEO, Robert Antokol, expressed excitement about the acquisition, stating that it aligns with the strategic expansion of their gaming portfolio. He emphasized the opportunity to leverage their expertise in live operations and proprietary technology for sustained growth.
"Innplay Labs brings a promising and innovative growth franchise in the Luck Battle genre," Antokol said. "We share a culture of focus, speed, and agility, being fellow Israeli-based companies. We look forward to this journey together."
Innplay Labs' CEO, Ore Gilron, added, "Our talented team has created outstanding game products with rich, engaging content, providing a uniquely entertaining gaming experience. Joining Playtika's portfolio will take Innplay Labs to new heights."
This acquisition represents Playtika's second major transaction in the quarter, following the acquisition of Youda Games' portfolio of content from Azerion for €81.3 million. The Youda Games collection includes popular titles like Governor of Poker.
Meanwhile, earlier attempts by Playtika to acquire Rovio Entertainment, known for the Angry Birds series, were unsuccessful. Playtika filed a proposal in November 2022 and increased its offer in January. However, Playtika withdrew its proposal in March, and Rovio was eventually acquired by Sega Sammy Holdings for €706 million in April.
Despite mixed results in Q2, Playtika reported positive financial outcomes. While revenue dipped by 2.5% year-on-year to $642.8 million, comprehensive net profit surged by 340.5% to $90.3 million. Adjusted EBITDA for the quarter also increased by 6.7% to $215.0 million.
