Swedish digital entertainment company Modern Times Group (MTG) announced that it has acquired 100% of Indian mobile word games developer PlaySimple for an initial $360 million. The company said that there will also be another $150 million reward put aside if certain performance metrics are hit.
MTG said 77% of the acquisition sum will be paid in cash, the remainder will be paid in MTG class B shares. With the acquisition, the company wants to strengthen its position in the casual games’ genre and to enter word games genre.
“PlaySimple’s ad-tech and cross promotion competences which have played a pivotal role in their own journey can in time allow us to accelerate the growth of our whole gaming vertical. Expanding our geographical footprint into the Indian subcontinent will also provide access to one of the best talent pools in the world.” MTG’s Group President and CEO Maria Redin said in a statement.
Bangalore-based PlaySimple has developed a series of word games, including Word Trip, Word Trek, Daily Themed Crossword, and Word Wars, which have totaled 75 million downloads and currently have around 7 million monthly active users and 1.9 million DAUs.
Currently employing 215 full-time staff, PlaySimple generated net revenue of $83 million last year, representing 144% year-over-year growth, and it was on track to hit over $60 million in revenue in the first half of 2021.
“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.” PlaySimple’s co-founder and CEO Siddharth Jain said.