Playtika buys Israeli gaming co SuperPlay for up to $1.95b

Israeli mobile game developer Playtica Holding Company PLTK (NASDAQ:PLTK) announced that it will acquire the Israeli-based mobile gaming company Super play The deal is valued at $700 million, plus an additional $1.25 billion in contingent consideration, subject to the achievement of certain financial targets over three years, adjusted for EBITDA performance. In other words, the final acquisition price could be as high as $1.95 billion.

Playtica says the transaction is expected to close in the fourth quarter of 2024. Contingent payments, if any, are expected to be funded through cash generated from ongoing operations and the company’s balance sheet. Playtica is evaluating financing alternatives and near-term debt maturities. Playtica says it “remains committed to its dividend and quarterly capital return program.” The transaction is expected to add an experienced team to Playtica with a proven track record of launching successful new games and is expected to be a meaningful growth driver for Playtica once completed. The proposed acquisition is subject to customary closing conditions and regulatory approvals.

Founded in 2019 and has offices in Rosh HaAyin

SuperPlay, which develops multiplayer mobile games, was founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, and industry veteran Elad Drori. The Rosh HaAyin-based company launched the popular mobile game Dice Dreams six months after its founding. Domino Dreams is another popular title, and the company has two more games in development. SuperPlay’s senior management includes CTO Chen Mark, CEO Dr. Noam Banon, and CFO Amir Hanin. According to IVC, SuperPlay has 300 employees, including more than 100 in Israel and offices in Ukraine, Romania, and India. Almog and Netzer will continue to lead SuperPlay after the acquisition, at its own studio.

“It’s a testament to our amazing team who bring creativity and passion to everything we create,” said Almog and Netzer. “With Playtika’s support, we will continue to develop the most unique and interesting games in their category, and share knowledge that will push each other to new heights.”

The company has raised an estimated $30-35 million in three funding rounds from investors including Eyal Ofer’s OG Venture Partners, Israeli fund Key1, founded by former Goldman Sachs executives, Gigi Levy-Weiss’ NFX, General Catalyst, North83, and VGames. NFX and General Catalyst are believed to have been the company’s first investors in the $6 million seed round. All investors will receive high returns from the deal.

“We see the acquisition of SuperPlay as a major step in strengthening Playtika’s leadership in mobile gaming, driving growth through large-scale titles, and unlocking new opportunities,” said Playtika CEO Robert Antokol. “SuperPlay’s proven talent and success in navigating complex environments aligns seamlessly with our team. Together, we are expanding our ability to deliver exceptional experiences to gamers around the world.”

Playtika’s stock price rose 0.77% on the Nasdaq yesterday, giving the company a market value of $2.935 billion.

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 19, 2024.

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