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Playtika acquires Innplay Labs up to $300m

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Social gaming developer Playtika has entered into a definitive agreement to acquire Israeli-based mobile gaming studio Innplay Labs for up to $300.0m (PS241.4m/EUR281.5m).

Playtika is obligated to pay an initial amount of $80.0m, but due to various clauses the price may end up being much higher.

The agreement’s terms, such as the date of its closing, have not been disclosed. Playtika stated that the acquisition proposal is still subject to customary conditions.

Innplay Labs was founded in 2019. Its current titles include Water Ride, BrixMaster and Animal Kingdom. Vgames is one of the investors in this studio.

Playtika’s CEO Robert Antokol stated that the purchase supports the “strategic expansion” of the developer’s portfolio.

Antokol stated that “the acquisition of Innplay Labs is another strategic addition to our portfolio, with an innovative and promising growth franchise within the Luck Battle genre.”

It presents us with another chance to leverage our experience in using live operations and proprietary technologies to drive sustainable, long-term business growth.

Innplay, a company based in Israel that is also recognized for its innovation, shares the same culture as ours of speed, agility, and focus. “We are thrilled to be embarking on this exciting journey with Innplay and to rebrand Animals & Coins.”

Ore Gilron, CEO of Innplay added that “in 2019, Innplay Labs was formed to shape the next-generation of mobile gaming.” Our team of highly skilled and talented game operators has put together their passions to develop an excellent game with rich, engaging content. This provides our audiences with a unique gaming experience.

Innplay Labs will reach new heights as a result of joining Playtika’s portfolio of strong casual games.

Playtika expands its M&A activities

Playtika has now completed its second deal in the first quarter. The developer acquired the Youda Games content portfolio from Azerion last month for EUR81.3m.

If the transaction proceeds as planned, Playtika would take over the portfolio. Youda Games’ collection contains a variety of titles related to gambling, such as the social card game Governor of Poker.

Under normal closing conditions, the deal should be completed by the end the third quarter.

Playtika tried to buy Rovio, the company behind the popular Angry Birds games, but failed.

Playtika submitted an initial offer in November 2022, and then increased it in January. Playtika’s CEO Antokol stated that the deal was beneficial for Rovio shareholders at the time.

Playtika, however, announced in March that it was not going to proceed with the talks and retracted its proposal. Rovio had launched a review of its strategic direction to take into account offers made by Playtika as well as other parties.

Sega Sammy Holdings and Rovio reached an agreement in April to purchase Rovio. The deal was worth EUR706.0m. The offer was EUR9.25 per a share, which is higher than Playtika’s EUR9.05.

Profits up despite revenue decline in Q2

Playtika’s Q2 results were mixed, which led to this M&A. The revenue fell by 2.5% on an annual basis to $642.80m for the quarter ending 30 June.

Playtika reported a drop of 9.9% in revenue from social casino games, while casual game revenue rose 3.7% and Blitz bingo revenue increased 6.3%. The average daily paid users dropped by 1.0%, to 307,000. In contrast, average payer conversion climbed 3.2%.

However, the reduced cost meant that comprehensive net profit increased by 340.5% to $90.3m. The adjusted EBITDA increased by 6.7% for the third quarter to reach $215.0m.

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