Playtika, a social games developer, has acquired Innplay Labs a mobile gaming company based in Israel just two weeks after signing an agreement.
Playtika negotiated a deal with Innplay to buy it for as much as $300.0m. (PS245.8m/EUR283.9m). This was done earlier in the month. The initial EUR80.0m is included, but due to various clauses the price may end up being much higher.
Innplay Labs, which has operated since 2019, is known for its games Water Ride and Animal Kingdom. In its short existence, the company has received investment from Vgames, an entrepreneurial venture fund.
Playtika claims that this acquisition shows its commitment to expanding its mobile gaming platform. Playtika closed the purchase of Azerion’s Youda Games content portfolio for EUR81.3m last month.
Playtika’s president and chief executive officer Craig Abrahams stated that the company has a track record for completing acquisitions with strategic value. This includes maximizing high-growth IP like ‘Animals & Coins.’
This acquisition strengthens our leadership position in mobile games. This is proof of our investment in Israel, a technology hub for the world.
Playtika M&A continues despite Rovio setback
After Rovio’s offer failed, Innplay Labs acquired the Youda Games Portfolio and Innplay Labs in a double-quick acquisition. Rovio, the company behind the Angry Birds games, is the creator of the Rovio brand.
Playtika submitted an initial offer in November 2022, and then increased it in January 2019. Robert Antokol, Playtika’s CEO at the time said the acquisition was beneficial for Rovio shareholders.
In March, Playtika announced that it would no longer be continuing the talks. It also retracted its offer. 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 announced in April that they had agreed to purchase Rovio, for EUR706.0m. The offer was EUR9.25 for each share, which is higher than Playtika’s highest proposal of EUR9.05. Sega Sammy acquired the company last month.
Profits soar by 340.5%
The impact of the Youda Games deal on Playtika Q3 results is unclear. The Innplay Labs acquisition will have little impact on Playtika’s Q3 performance as the quarter concludes tomorrow, 30 September.
Playtika had a second quarter that was mixed. The revenue fell by 2.5% on an annual basis to $642,8m for the quarter ending 30 June.
Revenue from social casino games fell 9.9%. Casual games revenues grew 3.7%, and Blitz bingo revenue increased 6.3%. The average daily paying user fell by 1.0%, to 307,000. However, the average payer conversion rate increased 3.2%.
Reduced costs led to a 340.5% increase in net profit, which soared from $90.3m. The adjusted EBITDA was also up by 6.7%, to $215.0m.
