Playtika Holding Corp. has announced its definitive agreement to acquire Superplay, a mobile gaming company, for $700 million with additional contingent consideration of up to $1.25 billion. This acquisition is expected to add an experienced team to Playtika with a track record of launching new, successful games and is anticipated to be a meaningful growth driver for Playtika once completed.
Superplay, founded in 2019, has emerged as expert game makers with two successful titles, Dice Dreams and Domino Dreams, boasting a combined 1.7 million average daily active users as of August 2024. Playtika sees this acquisition as a key move in strengthening its leadership in mobile gaming, driving growth with scaled titles, and unlocking new opportunities.
The proposed transaction structure entails Playtika acquiring Superplay for $700 million in up-front consideration, subject to customary working capital adjustments, with additional contingent consideration of up to $1.25 billion based on Superplay achieving certain financial targets for 2025, 2026, and 2027. This earnout transaction structure rewards performance while mitigating downside risk.
The acquisition of Superplay is expected to provide Playtika with several strategic and financial benefits, including the addition of scaled growing titles in high-growth coin looters and board categories, a talented development team with two proven hits and two more in the pipeline, cultural alignment with founders and the team, and it is anticipated to move the needle for Playtika’s proforma growth.
The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2024. Playtika's management will update its guidance for the fiscal year during Q3 2024 earnings. Morgan Stanley & Co. LLC is acting as the exclusive financial advisor to Playtika, and Furth, Wilensky, Mizrachi, Knaani – Law Offices is serving as legal counsel. The Raine Group and Aream & Co are acting as financial advisors to Superplay, and Raz, Dlugin & Co. is serving as legal counsel.
This acquisition marks a significant move for Playtika in the mobile gaming industry and is expected to drive substantial growth and expansion for the company in the coming years. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $7.89. For more information, read the company's full 8-K submission here.
