Rovio Entertainment, the creator of Angry Birds, announced today that it is acquiring 100% of the shares in Ruby Games, a hyper-casual game studio based in Izmir, Turkey.
Under the terms of the deal, Rovio will acquire Ruby Games in multiple tranches. In the first tranche, Rovio will buy 20% of Ruby’s shares for $10 million in cash. The first tranche is expected to close by the end of the third quarter or beginning of the Q4.
In the second tranche, which will be paid as 60% cash and 40% Rovio shares, Rovio will purchase 50% of Ruby’s outstanding shares for an amount not exceeding US$80 million, based on Ruby’s financial performance in the 12 months prior to October 2022.
The remaining 30% of Ruby’s outstanding shares will be acquired over the next five years with at least 50% cash and rest in cash or in five equal tranches as shares, but with a valuation based on Ruby’s financial performance.
‘’With the acquisition of hyper-casual game studio Ruby Games, we are taking an important step forward in our growth strategy. By entering the rapidly growing hyper-casual market we are enriching our audience base, and offering our players a more diverse portfolio of titles’’ said Alex Pelletier-Normand, CEO of Rovio. ‘’Ruby Games has launched several successful games and their hit-ratio is impressive. Expanding Rovio’s family with the talented and highly-agile developers of Ruby Games is exciting! Welcome to the flock!
Founded in 2018 by Mert Can Kurum, Ruby Games generated a revenue of $7.8 million between January and June 2021. The studio’s 13 games have reached 600 million downloads so far. “Hunter Assassin”, the most successful game ever developed by Ruby Games, managed to become the 6th most downloaded game in all categories worldwide in 2020.
‘’Becoming part of a company that has created one of the most beloved mobile gaming brands in the world, Angry Birds, is exciting and we are very proud of joining Rovio. This acquisition opens up a new chapter for us, and Rovio’s long history and expertise in free-to-play games will help us to reach higher levels. We look forward to working together with Rovio’s other studios, and also to share our knowledge and expertise,‘’ says Mert Can Kurum, CEO of Ruby Games.