Playtika to acquire mobile game maker SuperPlay for up to $1.95B

Playtika has agreed to acquire SuperPlay, a mobile gaming company in Israel for a price ranging from $700 million to $1.95 billion.

The price of the Tel Aviv, Israel-based maker of Dice Dreams and Domino Dreams depends on whether SuperPlay hits financial targets over three years. If it does, then the transaction will be worth $1.25 billion more, for a total of $1.95 billion. It’s a sign that mobile game acquisition activity is coming back to life.

The transaction is expected to add an experienced team to Playtika with a track record of launching new, successful games, and is expected to be a meaningful growth driver for Playtika once consummated.

Founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, along with industry veteran Elad Drory, SuperPlay has emerged as expert game makers with two successful titles — Dice Dreams, a fast-growing coin looter game, and Domino Dreams, a popular board game.

“We see the acquisition of SuperPlay as a key move in strengthening Playtika’s leadership in mobile gaming, driving growth with scaled titles, and unlocking new opportunities,” said Robert Antokol, CEO, in a statement. “SuperPlay’s proven talent and success in navigating complex environments align seamlessly with our team. Together, we’re expanding our ability to deliver exceptional experiences to players worldwide.”

SuperPlay has two more games currently in development. In 2024, both Dice Dreams and Domino Dreams have grown rapidly, boasting a combined 1.7 million average daily active users as of August. Gilad and Eyal will continue to lead SuperPlay as its own studio within Playtika.

“We’re incredibly excited for this opportunity,” said Gilad Almog and Eyal Netzer, in a statement. “It is a testament to our amazing team who bring creativity and passion to everything we make. With Playtika’s backing and support, we’ll continue growing the most memorable and engaging games in their category, and exchange knowledge that will propel each other to new heights.”

Strategic and financial benefits

Playtika said the benefits of the deal including acquiring scaled growing titles in the high-growth coin looters and board categories, the addition of a talented development team with two proven hits and two more in the pipeline, cultural alignment with founders and team, expected to move the needle for Playtika’s proforma growth and earnout transaction structure rewards performance while mitigating downside risk.

Playtika will acquire SuperPlay for $700 million in up-front consideration, subject to customary working capital adjustments, which is expected to be funded using balance sheet cash.

Additional contingent consideration of up to $1.25 billion is subject to SuperPlay achieving certain financial targets for 2025, 2026, and 2027. Annual earnout quantum and eligibility are contingent on both revenue and Adjusted EBITDA performance. The earnout payments, if any, are expected to be funded via cash generated from ongoing operations and the company’s balance sheet. Playtika is evaluating its financing alternatives and debt maturities in the near-term.

Playtika said it remains committed to its quarterly dividend and capital return program. This transaction has been approved by the boards of Playtika and of SuperPlay. The transaction is expected to close in the fourth quarter of 2024. The proposed acquisition is subject to the satisfaction of customary closing conditions and regulatory approvals. The company will provide updated M&A capital allocation guidance as part of FY2024 earnings. Playtika will hold an investor call tomorrow.

Morgan Stanley & Co. LLC is acting as exclusive financial advisor to Playtika and Furth, Wilensky, Mizrachi, Knaani – Law Offices is serving as legal counsel. The Raine Group and Aream & Co are acting as financial advisors to SuperPlay. Raz, Dlugin & Co. is serving as legal counsel.

SuperPlay is backed by NFX, 83North, VGames, General Catalyst, Key1 Capital, O.G. Venture Partners, and Gal Ventures.

Update: Corrected total value of the transaction. 3:06 pm 9/18/24