Modern Times Group (MTG), a Sweden-based gaming giant, has reportedly acquired Bengaluru-based word games developer PlaySimple Games. Through this deal, the Swedish company has acquired a 100% stake in the Indian game developing company for $360 million. The deal involves a cash-and-equity form.
PlaySimple Games is an Indian startup founded in 2014. The seven-year old company has its headquarters in Bengaluru, India and is backed by Elevation Capital and Chiratae Ventures. They offer word-based games like Daily Themed Crossword, WordTrip, WordJam, WordWars, WordTrek. It is also said to have four new games to be launched this year and is eyeing card games such as Solitaire.
MTG acquired PlaySimple for a massive $360 million. This deal is reportedly one of the largest deals among Indian gaming startups. Through this deal, MTG is looking at expanding its presence geographically in India, where the gaming market is rapidly increasing.
The growth of PlaySimple is evident from this deal. The gaming startup had once raised $4 million from Elevation Capital and Chiratae Ventures has now managed to close a deal of $360 million. Since its inception in 2014, the company has seen rapid growth. Its revenues reportedly increased by 144% during the financial year 2020. The gaming app has over 75 million installs and seven million Monthly Active Users (MAUs).
We've just now announced the acquisition of PlaySimple, a leader in the word games genre globally and one of the most exciting Indian-born game developers of late.
Read the full press release here:https://t.co/0OmtvEsW4C #gaming #playsimple #mtg pic.twitter.com/SIOtIEeNC4
— Modern Times Group (MTG) (@MTGAB) July 2, 2021
Apart from $360 million in cash and equity, the deal also includes a performance-based earn-out payment of SEK 1,287 million in aggregate.
Talking about the acquisition, MTG’s Group President and CEO Maria Redin said, “PlaySimple is a rapidly growing and highly profitable games studio that quickly has established itself as one of the leading global developers of free-to-play word games, an exciting new genre for MTG. An experienced management team and focused, data driven operating model has allowed PlaySimple to develop multiple game hits especially popular with the growing global audience of female gamers.”
“We’re delighted to join the MTG family – MTG’s approach to investments offers us creative freedom, and the opportunities created by the GamingCo really resonate with our team. We’re excited to have found a new home for our company, one where our team can learn and grow alongside our fellow companies,” said Siddharth Jain, co-founder, PlaySimple.
MTG has acquired gaming companies in Europe, North America, and Australasia in the past. The acquisition of PlaySimple has helped MTG build a diversified portfolio of owning games in different domains such as city building and strategy (InnoGames), mobile racing (Hutch), idle games (Kongregate), tower defense (Ninja Kiwi) and now word games domain through PlaySimple.
Amarylisa Gonsalves is a Content Writer at Gutshot Magazine. Advancing from a marketing background, she found her calling in writing. She takes delight in exploring genres and is a curious learner. Patient and ambivert, she believes in letting her work speak for itself. Apart from content writing, she finds solace in writing poetry by expressing herself through words. Additionally, she adores indulging in anything that satisfies her creative self, like drawing and DIY crafts.