In one of the biggest releases among Indian gaming startups, PlaySimple was acquired by the Swedish gaming major Modern day group (MTG). The companies have reached an agreement of approximately $ 360 million (Rs 2,691 crore) for the acquisition.
Besides the set amount, there is also a reward of $ 150 million (Rs 1,121 crore) for the Indian gaming company if it manages to achieve certain performance metrics.
As for the acquisition amount of $ 360 million, MTG will pay 77% of the acquisition amount to the Indian game developer in cash. The remainder of the amount of a 100% acquisition will be paid in the form of MTG Class B shares. MTG declares that it “will call an extraordinary general meeting to decide on the counterpart shares”.
In its statement, MTG cites the exponential growth of the PlaySimple market as the driving force behind this acquisition. He mentions that the company is one of the leading game developers and publishers in India and “is one of the world leaders in the fast growing mobile word game genre.”
PlaySimple increased its revenue by 144% in 2020 to $ 83 million. Growth is expected to continue in 2021, with first half revenue up around 82%.
Going forward, PlaySimple plans to release four new games this year and may expand into the card games genre as well.
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