MTG acquires Plarium for $620 million

In a significant move to expand its footprint in mobile gaming, Modern Times Group (MTG) has signed an agreement to acquire Plarium Global Ltd, the renowned developer behind RAID: Shadow Legends, a popular role-playing game with a massive global following. The acquisition, valued at $620 million, not only fortifies MTG’s position within the lucrative mobile RPG market but also aligns with its broader strategy of enhancing operational and financial scalability. The deal, expected to close in Q1 2025, highlights MTG’s intent to consolidate its place as a key player in the mid-core mobile gaming sector.

Plarium’s addition is set to bring extensive benefits to MTG’s portfolio. With Plarium’s annual revenues of $613 million and a reported $137 million in adjusted EBITDA over the last year, the acquisition nearly doubles MTG’s EBITDA while bolstering its cash flow generation. Key financial metrics point to a strong future for the combined group, with MTG’s expected total annual sales to exceed SEK 12 billion, alongside enhanced EBITDA projected at over SEK 3 billion. The acquisition will also contribute Plarium’s advanced live-ops, marketing expertise, and user acquisition capabilities, presenting substantial commercial synergies and opportunities to leverage MTG’s own game portfolio for further growth.

MTG’s decision to acquire Plarium underscores its strategic vision of building a comprehensive gaming ecosystem that supports sustainable organic growth. Integrating Plarium’s proprietary platforms, Plarium Play and GoGame, MTG expects to amplify the performance of its current titles by introducing its games to new audiences while further optimizing revenue through Plarium’s advanced direct-to-consumer channels. Additionally, MTG aims to incorporate Plarium’s tech into areas like browser-based play and multi-platform expansion, creating a robust foundation for future content deployment.

The financial structure of the transaction involves an upfront payment, with $20 million deferred until 2026. The arrangement also includes performance-based earnouts tied to the revenue of RAID: Shadow Legends, potentially adding up to $200 million by 2028 if certain targets are met. MTG’s financing mix, which combines current cash holdings with secured loans, has been designed to maintain manageable leverage, providing a solid financial foundation as the company moves forward with this acquisition.

Plarium’s catalog extends beyond RAID: Shadow Legends to other key titles such as Vikings: War of Clans, Mech Arena, and Merge Gardens, which together account for approximately 90% of the company’s revenue. The addition of these high-performing games offers MTG access to an even wider market and boosts its reach within the mid-core and casual gaming sectors. Maria Redin, MTG’s CEO, expressed enthusiasm about the deal, highlighting Plarium’s successful and innovative team as an asset to MTG’s growth ambitions, enhancing the group’s offerings with popular evergreen IPs.

This acquisition is a strategic leap forward for MTG, establishing it as a leading European entity within mobile gaming, with Plarium’s strong pipeline and proprietary technologies serving as a catalyst for new development. By expanding its presence within the global RPG genre—an industry segment valued at $3.7 billion in North America and Europe—MTG is set to further diversify its revenue streams and strengthen its standing in the competitive gaming landscape.

With regulatory approvals anticipated by early 2025, MTG plans to discuss the full impact of this acquisition at its Capital Markets Day in 2025. As the transaction comes to fruition, MTG will lay out its roadmap for long-term growth, underscoring its commitment to building a dynamic gaming portfolio that meets the demands of today’s digital entertainment market.