Swedish gaming firm MTG (Modern Times Group) acquired Indian gaming startup PlaySimple for $360 Million. The two companies each respectively confirmed the news of the acquisition. This is MTG’s third recent acquisition of other gaming firms. The company purchased Ninja Kiwi and Hutch in recent quarters.
MTG reported that it will pay over 3/4th (77%) of the acquisition fee in cash, while the remaining amount will be covered by an allotment of MTG shares. If specific performance metrics are met, MTG will disperse an additional $150 Million as a bonus.
This deal marks the exit of one of India’s most prominent startups. PlaySimple s a mobile app developer that has created hits like “Word Wars,” “Crossword Jam,” “Word Trip,” “Solitaire,” and “Daily Themed Crosswords.” PlaySimple was initially funded with $4 million on a valuation of $16 Million from venture capital firms Chratae Ventures and Elevation Capital. The startup, founded in Banglore, raised an additional $4.5 million from outside investors.
PlaySimple got off to a fast start earning $83 Million in 2020 and over $60 Million in revenue during the first half of 2021. Their estimated revenue for 2022 remains steady at approximately $80.5 Million.
PlaySimple’s co-founders and current management team managers, Suraj Nalin, Siddhanth Jain, and Preeti Reddy, noted their pride in the games the company has developed and now offers. In addition to their satisfaction regarding the overall infrastructure and scale the firm has achieved with their team.
The co-founders went on to add their excitement about joining the MTG family. According to them, the major benefits are expanding into the European market, their newfound ability to invest in cutting-edge technology backed by MTG, and of course, developing, building, and releasing exciting games.
Following the acquisition, PlaySimple plans to launch several new games while expanding its offerings within the mobile card games genre.
PlaySimples metrics are astounding. Their free-to-play games have garnered over 75 million installations on users’ phones, with the games maintaining over 2 million daily users.
MTG, the Stockholm-based firm, believe that its purchase of PlaySimple will help them build a more diversified gaming portfolio. The firm highlighted its satisfaction with recent acquisitions by saying that the purchase of PlaySimple and other recent additions helped them scale and diversify while also accelerating performance and ultimately creating a more stable business.
MTG’s CEO and President, Maria Redin went on to add that the company’s recent acquisition of PlaySimple provided MTG with entrance into an exciting new genre.